Four Firms Guide in $1.5 Billion Nesco Deal for Custom Truck

Hughes Hubbard & Reed is advising Platinum Equity on its participation in Nesco Holdings Inc.’s $1.475 billion agreement to acquire Custom Truck One Source, or CTOS, a rival provider of specialized truck and heavy equipment.

Latham & Watkins is advising Nesco, while Kirkland & Ellis is representing CTOS, the law firms said. Davis Polk said it is advising Nesco’s financial adviser, J.P. Morgan Securities LLC, on the deal, which is expected to close in 2021’s first quarter.

Platinum said it has committed to invest over $850 million in Nesco and will hold a majority interest in the combined company, which will be a one-stop-shop provider of specialty rental equipment to electric utilities, telecommunications, and other companies.

The new company will “serve highly attractive and growing infrastructure end-markets, including transmission and distribution, the 5G revolution build-out and critical rail and other national infrastructure initiatives,” Platinum said.

Nesco lead investors, Energy Capital Partners and Capitol Investment, and existing CTOS lead investor, Blackstone, will remain shareholders in the new company.