Platinum Equity Acquires NESCO, NESCO Management to Retain Minority Stake
Platinum Equity and Hammond, Kennedy, Whitney & Company, Inc. (“HKW”) jointly announced today that Platinum Equity has acquired NESCO from an investor group led by HKW. NESCO founder and CEO Rob Troxel will retain an ownership stake in the business going forward. Terms of the transaction were not disclosed.
Based in Bluffton, Ind., NESCO is a leading provider of fleet equipment rental, sales and services for the North American electrical transmission and distribution market. NESCO maintains one of the largest utility equipment fleets in North America and services a broad customer base across a national footprint of 32 locations throughout the United States. “NESCO has one of the most comprehensive fleets in the industry, a strong national network and a true commitment to customer service,” said Platinum Equity’s Louis Samson, who led the team pursuing the NESCO acquisition. “We look forward to partnering with NESCO’S management team and talented employees to help the company achieve new levels of success.” NESCO’S specialized fleet serves a variety of critical electrical transmission and distribution infrastructures and projects. In addition to the company’s core rental business, NESCO also serves as a dealer for new and used equipment.
“NESCO is a premier company and a leader in its segment,” said Glenn Scolnik, HKW’s current and NESCO’S former Chairman of the Board. “We are proud of what we have accomplished with the NESCO team – it’s a tremendous organization with a strong culture. Platinum brings additional resources that can help NESCO evolve and continue growing to better serve its customers. It is a win-win for everyone.”
“Partnering with Platinum Equity is very exciting for our organization, our customers and all of our partners,” said Mr. Troxel. “Platinum understands our business, and their culture and experience in the equipment rental market make them a great fit for NESCO.”
“Platinum will provide us with the financial wherewithal and the operational support we need to continue on our growth trajectory,” added NESCO President Brad Todd.
A team of Platinum operations professionals has been deployed to ensure a seamless transition. Mr. Samson said that in addition to providing operations support, Platinum Equity’s M&A team will continue working closely with NESCO to identify acquisition opportunities. “NESCO has a proven track record at executing and integrating acquisitions and we will work with the management team to identify, evaluate and pursue attractive opportunities to grow and expand the business, both organically and through additional acquisitions,” said Mr. Samson.
Harris Williams & Co. acted as the exclusive financial advisor to NESCO.