Nesco Holdings Inc logo

CIC U - Nesco Holdings Inc News Story

$9.25 0.0  0.3%

Last Trade - 31/07/19

Sector
Financials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £n/a
Position in Universe th / 7320

Mark Ein's blank-check acquisition company nears deal for NESCO -sources

Mon 8th April, 2019 3:00am
By Joshua Franklin
    April 7 (Reuters) - Capitol Investment Corp IV  CIC_u.N ,
the fourth "blank-check" acquisition company formed by investor
Mark Ein, is nearing a deal to buy a majority stake in NESCO
LLC, valuing the aerial lifts and cranes rental company at $1.1
billion, including debt, people familiar with the matter said on
Sunday. 
    The deal represents a bet on increasing demand for such
equipment by utility companies overhauling their grids,
telecommunications firms upgrading their networks, and railroad
operators spending more to maintain their tracks.
    Under the terms being discussed, Capitol will acquire a 72
percent stake in NESCO, said the sources, who requested
anonymity because no official announcement has been made.
Private equity firm Energy Capital Partners, which led a $875
million leveraged buyout of NESCO in 2014, would retain a
minority stake. 
    An announcement could come as soon as Monday, the sources 
said. 
    A representative for Capitol declined to comment.
Representatives for NESCO and Energy Capital Partners did not
immediately respond to requests for comment. 
    Fort Wayne, Indiana-based NESCO rents out specialized
construction and maintenance equipment, such as trucks, cranes
and pressure diggers. Its customers include railroad operator
Union Pacific Corp  UNP.N  and the Los Angeles Department of
Water and Power. 
    Capitol sees scope to grow NESCO by adding to its fleet to
meet excess demand, as well as through add-on acquisitions,
according to one of the sources. 
    Capitol also plans to add SBA Communications Corp  SBAC.O 
President and Chief Executive Jeffrey Stoops, and former United
Rentals Inc  URI.N  Chief Financial Officer William Plummer to
NESCO's board of directors, with Plummer as chairman, the source
said. 
    Capitol is Ein's fourth special purpose acquisition company
(SPAC), an investment vehicle that raises money for acquisitions
through an initial public offering (IPO). IPO investors do not
know in advance which company a SPAC will buy.
    Capitol completed its IPO in 2017, raising $402.5 million.
It will fund its acquisition of NESCO by also using debt. 
    Ein, who last week closed a deal to acquire the rights of
the Citi Open tennis tournament in Washington D.C., worked at
Carlyle Group LP  CG.O , Brentwood Associates and Goldman Sachs
Group Inc  GS.N  before setting out on his own as an investor.
    His three prior SPACs invested in real estate investment
trust Two Harbors  TWO.N , specialty cruise operator Lindblad
Expeditions Holdings  LIND.O  and Cision Ltd  CISN.N , a
provider of software for PR professionals.
    SPACs raised around $10 billion in 2018, similar to the
amount raised in 2017. This compares to $3.5 billion raised in
2016, according to data provider Dealogic. 

 (Reporting by Joshua Franklin in New York; Editing by Daniel
Wallis)
 ((joshua.franklin@thomsonreuters.com; +1 646-223-6356; Reuters
Messaging: joshua.franklin.thomsonreuters.com@reuters.net))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.