NES Founder Rodgers Acquires Hoist Division

Jan. 10, 2005
Kevin Rodgers, founder of National Equipment Services, and Prospect Partners LLC, a Chicago-based investment firm specializing in niche lower-middle-market companies, last week acquired the assets of NES Industrial Hoist from NES Rental Holdings. NES ...

Kevin Rodgers, founder of National Equipment Services, and Prospect Partners LLC, a Chicago-based investment firm specializing in niche lower-middle-market companies, last week acquired the assets of NES Industrial Hoist from NES Rental Holdings.

NES Industrial Hoist is the market leader in the rental, service and sales of pneumatic, electrical and mechanical powered chain hoists and winches ranging in capacity from ½-ton to 100 tons. The equipment is typically supplied to refineries, power plants, shipyards, offshore applications, steel and paper mills and other large industrial users.

The company, to be known as Industrial Hoist Services, was the first company acquired by Rodgers when he founded National Equipment Services in 1997. IHS has the largest rental fleet of hoists, winches, and related rigging equipment in the United States. With its main facility in Brazoria, Texas, IHS has branches in Columbus, Ohio; Atlanta; and Geismar, La.

“I’ve come full circle and I’m thrilled to be back in the equipment industry,” Rodgers, who left NES in December 2002, told RER.

Rodgers said the biggest change in IHS since he acquired it as the platform company for NES, has been the increase in demand for rental of the equipment. “When we acquired it, rental was maybe 40 percent of the business,” he said. “Now it is 75 percent. We see enormous potential in the market and believe IHS can be a $50 million business in five years.” Rodgers said IHS currently grosses about $12 million a year. In addition to sales, parts and service revenue, IHS brings in revenue from re-rentals to other rental companies that work in the industrial market but lack extensive chain hoist inventory.

Typical applications include plant shutdowns, routine repair and maintenance, new construction and overhead hoist/crane safety inspection work. The company provides certification services for overhead hoists and winches.

In addition to Rodgers, Prospect Partners partnered with the division’s management team including James Kowalik, who founded the business in 1983 and will continue to run its day-to-day operations as president, along with current executives Mark Atnip, operations; Anthony Piwonka, sales; and Ed Gonzales, service.

Prospect principal Louis Kentner, who will serve IHS as chairman, said the unique rental business didn’t fit into NES’ plans as the company looked to concentrate more on general rental. Kentner said Prospect looks for niche opportunities and plans on pursuing other growth acquisition opportunities, in hoist rental as well as other niches such as overhead crane service.