Platinum Equity (Platinum) has committed to invest over $850m into Nesco in connection to the deal and will hold a majority stake (57%) in the combined company.

CTOS shareholders, including certain funds managed by The Blackstone Group, in its capacity as the current majority owner of CTOS, and certain members of the CTOS management team are expected to invest approximately $100m into Nesco in exchange for newly-issued common stock.

The combined company will offer customers a full suite of solutions across the specialty rental equipment value chain, including: equipment rental; new sales; used sales; aftermarket parts and service; and retail parts, tools and accessories. It will operate on a national scale with over 1,800 employees, 46 company-operated locations and a rental fleet of almost 9,000 units.

“The combination will create a leading, one-stop-shop provider of specialty rental equipment serving highly attractive and growing infrastructure end-markets, including transmission and distribution, the 5G revolution build-out and critical rail and other national infrastructure initiatives. With complementary business lines, customer bases and capabilities, the combination is expected to yield significant benefits from increased scale, breadth of product and service offerings and expanded geographic coverage,” said Nesco.

CEO of CTOS Fred Ross will become the CEO of the combined company, which will be headquartered at CTOS’s campus in Kansas City with operations maintained in Indiana, where Nesco’s headquarters are situated.

The transaction has been unanimously approved by the Nesco Board of Directors and is expected to close in the first quarter of 2021, subject to shareholder approval and other customary conditions.