Nesco Holdings, Inc. Announces Acquisition Of Truck Utilities

Strengthens Nesco’s Regional Footprint in Minnesota, North Dakota and Kansas with the Addition of More Than 130 Specialized Fleet Units with an Average Age of 2.3 Years

Nesco Holdings, provider of specialty rental equipment to the electric utility, telecom and rail end-markets, today announced that it has reached a definitive agreement to acquire Minnesota-based Truck Utilities, Inc., a specialty rentals, service and truck upfitting company serving the electric transmission, distribution, telecom and other regional end-markets.  The transaction is expected to be immediately accretive to earnings per share. 

Truck Utilities has been family owned and operated for over 50 years.  The company provides specialized fleet and equipment, service, upfit, parts, tools and accessories to the Upper Midwest region from its three facilities located in St. Paul, Fargo and Kansas City.  Truck Utilities’ current fleet includes 132 specialty units with an average age of 2.3 years, and original equipment cost of $44 million.

Lee Jacobson, CEO of Nesco, stated, “We have known and interacted with Truck Utilities and its President, Craig Capeder, for over a decade.  Nesco and Truck Utilities share a common commitment to providing customers best-in-class specialty equipment, responsiveness and world-class service in the markets we serve.  This transaction will provide our combined customer base with access to a young, growing fleet of specialty equipment, parts and accessories, in addition to enhanced upfit capabilities and an expanded services radius.”

“Nesco and Truck Utilities are complementary businesses with compelling synergies,” said Craig Capeder, President of Truck Utilities.  “Nesco is great partner, one with the resources to further strengthen our position in the markets we serve.  We are excited by the opportunities for growth that lay ahead.”

The purchase price of $42.2 million remains subject to adjustment based on the finalization of Truck Utilities’ financials for the period ended September 30, 2019 and certain capital expenditures to support fleet additions as well as other customary adjustments.  The Company plans to finance the transaction by accessing it’s $350 million asset-based credit facility and the transaction is expected to improve Nesco’s leverage metrics on a pro forma basis, including anticipated synergies. 

The transaction is subject to customary closing conditions, including the completion of an accounting review of Truck Utilities financial data for its fiscal year ending September 30, 2019, satisfactory to Nesco.  We will provide updated full-year guidance, including impact of this transaction, when we report our third quarter 2019 results in early November.  The parties anticipate closing the transaction during the fourth quarter 2019. 

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