CHICAGO — NES Rentals Holdings last month completed 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 a share. Including the repayment and assumption of certain liabilities, the transaction is valued at about $850 million.
“This has been a positive process for all of NES Rentals' stakeholders, including our shareholders, employees and customers,” said chairman and CEO Andrew Studdert. “We will now have the necessary resources to take advantage of the numerous growth opportunities that lie ahead.”
Studdert told RER that the new ownership group is committed to continuing to expand and grow NES. “We will focus very much on continuing to grow the business organically, and look opportunistically at acquisitions as they come forward,” Studdert said. “We'll sit down with our new owners over the next month or so and do a strategic plan for the next couple of years. Right now, everything is on the table.”
Studdert added that NES will continue to invest around $100 million annually in fleet, having spent about $300 million in new equipment since 2004. Studdert also said NES will continue to focus on improved maintenance procedures.
“We're very proud of maintaining our equipment at OEM spec, and keeping everything up to date,” he said. “We're seeing a much better onsite performance of our equipment now that our maintenance programs are fully in place.”
Diamond Castle said it will retain NES Rentals' name and management team, with Studdert continuing in his role as CEO and chairman.
“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,” said David Wittels, co-founder and senior managing director of Diamond Castle.
Based in Chicago, NES Rentals is No. 7 on the RER 100.