NES Rentals Holdings Inc., one of the largest aerial and general equipment rental and traffic safety service providers in the country, announced on Friday, July 21, the completion of the sale of the company to affiliates of Diamond Castle Holdings, LLC, a private equity firm.
Diamond Castle has purchased all of the outstanding shares of common stock for $18.75 per share. Including the repayment and assumption of certain outstanding liabilities, the transaction has a total value of approximately $850 million.
"This has been a positive process for all of NES Rentals' stakeholders, including our shareholders, employees and customers," said Chairman and Chief Executive Officer Andrew Studdert. "We are excited about partnering with Diamond Castle as we embark on this next stage of our company's history. We will now have the necessary resources to take advantage of the numerous growth opportunities that lie ahead."
"Our primary goal has always been to be a reliable partner for our customers," Studdert said. "We have made significant investments in our fleet, having invested almost $300 million in new equipment since 2004, and have increased our emphasis on equipment maintenance, reliability and enhanced customer service. Meeting our customers' needs will continue to be our number one priority going forward."
Ari Benacerraf, co-founder and senior managing director of Diamond Castle, said, "We are delighted to be partnering with NES Rentals, a company with a strong competitive position in a highly attractive segment of the general rental equipment industry."
"We look forward to working with NES Rentals' talented management team as they continue to profitably grow the business, improve operational efficiencies and execute their strategic plan," added David Wittels, co-founder and senior managing director of Diamond Castle.
Diamond Castle plans to retain NES Rentals' company name and management team. Studdert will continue in his capacity as chief executive officer and chairman of the board.
One of the largest companies in the country's $29 billion equipment rental industry, NES Rentals focuses primarily on aerial equipment, although each of the 120 branches houses equipment that specializes in meeting localized needs. Several branches in the southeast and Gulf Coast regions offer mobile and liquid storage services and were able to provide critical equipment to the recovery effort following Hurricanes Rita and Katrina.