Nesco Holdings, a provider of specialty rental equipment to the electric utility, telecom and rail end-markets, recently finalized the acquisition of Minnesota-based Truck Utilities, a specialty rentals, service and truck upfitting company serving the electric transmission, distribution, telecom and other regional end-markets.
Truck Utilities 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. The company’s current fleet includes 132 specialty units with an average age of 2.3 years and original equipment cost of $44 million, Nesco said.
“We are pleased to welcome Truck Utilities to the Nesco family and see the potential for significant synergies between our organizations,” said Lee Jacobson, CEO of Nesco. “We believe that Truck Utilities’ young, underutilized fleet, upfit capabilities and additional service locations will enhance our existing business.
“Nesco’s nationwide sales force and service network will bring scale to Truck Utilities’ existing platform and open the door to Nesco’s long-standing customer relationships.”
The purchase price is $42.2 million prior to certain capital expenditures to support fleet additions, as well as other customary adjustments, Nesco revealed. For the 12-month period that ended Sept 30, Truck Utilities generated an adjusted EBITDA of $8.2 million.
The transaction has the potential to create approximately $4 million of annual revenue and cost synergies, Nesco claimed.