Platinum Equity has signed a definitive agreement to sell NESCO to an affiliate of Energy Capital Partners LLC. Terms of the agreement, expected to close during the first quarter, were not disclosed. The sale comes on the heels of Platinum’s recent $1.1 billion acquisition of Volvo Rents.
Based in Fort Wayne, Ind., NESCO is a 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.
Platinum acquired a controlling interest in NESCO in October 2011 from an investor group that included founder Rob Troxel.
“We are proud of the way NESCO has grown and evolved over the past two years as part of the Platinum Equity portfolio,” said Louis Samson, the Platinum partner who led the team that acquired NESCO. “We made significant capital investments and partnered with the management team to drive substantial growth and operational improvements. The business is well positioned for continued success under Lee Jacobson’s leadership and the ownership of ECP.”
Since the acquisition by Platinum, NESCO has undergone a series of operational initiatives to drive organic growth and create a more profitable and operationally sound business. It made investments in people, fleet, operations, processes and systems.
Under Platinum’s ownership, NESCO also completed two add-on acquisitions, Penske’s utility rental division and Utility Equipment Leasing Corp.