Nesco Holdings, a provider of specialty rental equipment to the electric utility, recently agreed to acquire Minnesota-based Truck Utilities, a specialty service and truck upfitting company serving various regional end-markets.
The transaction is subject to customary closing conditions but expected by both parties to close in the fourth quarter of 2019.
Truck Utilities, family owned and operated for more than 50 years, provides specialized fleet and equipment, service, upfit, parts, tools and accessories to the upper Midwest from its facilities in St Paul, Fargo and Kansas City. Truck Utilities’ current fleet includes 132 specialty units with an average age of 2.3 years, and an original equipment cost of $44 million, according to Nesco.
“We have known and interacted with Truck Utilities and its president, Craig Capeder, for over a decade,” said Lee Jacobson, CEO of Nesco. “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.”
The purchase price of $42.2 million remains subject to adjustment based on the finalization of Truck Utilities’ financials for the period ending Sept 30 and certain capital expenditures to support fleet additions. The company plans to finance the transaction by accessing its $350 million asset-based credit facility, and the transaction is expected to improve Nesco’s leverage metrics on a pro forma basis, according to the company.
“Nesco and Truck Utilities are complementary businesses with compelling synergies,” Capeder said. “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.”