-Custom Truck One Source, Inc. completed the acquisition of HiRail Leasing Group, a leader in equipment leasing for the Canadian rail market, for $46.0 million.
-The acquisition of HiRail accelerates the growth of the Custom Truck rental segment and further expands Custom Truck’s geographic footprint in Canada with two new locations in Ontario and Alberta while strengthening relationships with major Canadian rail customers.
-The acquisition is expected to be immediately accretive and was financed with cash on hand and draws on Custom Truck’s existing credit facility.
KANSAS CITY, Mo., January 14, 2022 /PRNewswire/ — Custom Truck One Source, Inc. (NYSE: CTOS, “CTOS” or the “Company”) today announced that it has completed the acquisition of HiRail Leasing, Northshore Rail Contracting and Heavy Equipment Repairs (collectively , “HiRail” or the “HiRail Leasing Group”) for $46.0 million, subject to fleet and other customary purchase price adjustments.
With over 600 rental units, HiRail is one of the largest rail equipment rental providers in Canada and serves from Canada major railways and railway contractors. The two HiRail locations at Ontario and alberta will also expand Custom Truck’s geographic reach in the region. HiRail has a diverse rental fleet including light, medium and heavy duty trucks equipped with a wide range of accessories including rail equipment, grapples, joints, mechanical and welding equipment and snow plows , and also provides complementary fitting and repair services.
“We are delighted to welcome HiRail to the Custom Truck team,” said Custom Truck’s CEO. Fred Ross. “This acquisition allows us to accelerate the growth of our core rental business. We will leverage our one-stop rental, sales, equipment fit-out and service capabilities to meet critical equipment needs. new and existing customers across Canada. We are impressed with the activity that HiRail has integrated Canada and I look forward to working with all of their current employees.”
“HiRail has earned the trust of from Canada our major rail customers by providing reliable, top-notch service for over thirty years,” Ryan McMonagle, said Custom Truck’s president and chief operating officer. “We look forward to continuing this tradition and building on this reputation to expand our presence in Canada and to support our customers, employees and communities.”
The acquisition of HiRail was financed with cash on hand as well as draws on Custom Truck’s existing credit facility.
ABOUT CUSTOM TRUCK ONE SOURCE
Custom Truck One Source, Inc. is a leading supplier of specialty equipment, parts, tools, accessories and services to the electric utility transmission and distribution markets, telecommunications and rail North America. CTOS offers its specialized equipment to a diverse customer base for the maintenance, repair, upgrade and installation of critical infrastructure assets, including power lines, telecommunications networks and railway systems. The company’s coast-to-coast rental fleet of more than 9,000 units includes aerial devices, boom trucks, cranes, excavator derricks, pressure drills, rope gear, road-rail equipment, spare parts, tools and accessories. For more information, visit customtruck.com.
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. When used in this press release, the words “estimates”, “plans”, “expects”, “anticipates”, “expects”, “plans”, “intends”, “believes “, “seek”, “may”, “will”, “should”, “future”, “propose” and variations of these similar words or expressions (or negative versions of these words or expressions) are intended to identify the forward-looking statements.These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of control of the Company’s management, which could cause actual results to differ materially from those discussed in this press release. This press release is based on certain assumptions made by the management of the Company. the light of its experience in the industry e, as well as the Company’s perceptions of historical trends, current conditions, expected future developments and other factors the Company deems appropriate in the circumstances. . As you read and consider this press release, you should understand that these statements are not guarantees of performance or results and are subject to and involve risks, uncertainties and assumptions. You should not place undue reliance on these forward-looking statements. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect the Company’s actual performance and results and could cause actual results or operating results differ materially from those expressed in this press release. Important factors, among others, that may affect actual results or results include: difficulty integrating the businesses of Nesco Holdings and Custom Truck LP following the acquisition of Custom Truck LP (the “Acquisition”) and to fully realize the anticipated benefits of the Acquisition; public health crises such as the COVID-19 pandemic; the cyclicality of demand for our products and services and our vulnerability to industry, regional and national downturns, which impact, among other things, our ability to manage our rental equipment; fluctuations in our revenues and results of operations; our inability to obtain raw materials, components and/or finished goods on a timely and cost-effective basis; competition, which may have a material adverse effect on our business by reducing our ability to increase or maintain our revenues or profitability; any other increases in the cost of new equipment that we purchase for use in our rental fleet or for our sales inventory; the aging or obsolescence of our existing equipment and fluctuations in its market value; uncertainties about the success of our future acquisitions or integrations of companies we acquire; our inability to recruit and retain the experienced personnel we need to compete in our industries; greater unionization of our workforce; disruptions in our information technology systems or compromise of the security of our systems, limiting our ability to effectively monitor and control our operations, adapt to changing market conditions and implement strategic initiatives; adverse capital and credit market conditions and our inability to obtain additional capital when needed; our inability to renew our leases when they expire; our inability to keep pace with technological developments; our reliance on a limited number of manufacturers and suppliers and on third-party contractors to provide us with various services to help us conduct our business; risks related to our activities outside of United States, including changes in local political or economic conditions, currency exchange risks and risks of compliance with local laws and regulations; potential impairment charges and our inability to recover contracts with customers; the failure of federal and state legislative and regulatory developments that encourage spending on electricity transmission infrastructure to translate into demand for our equipment; physical disruptions to our operating and manufacturing sites due to public health concerns, equipment failures, acts of God, work stoppages, power outages, or other reasons; changes in international trade agreements, tariffs, import and excise duties, taxes or other governmental rules and regulations; our exposure to various risks related to legal proceedings or claims, and our failure to comply with applicable laws and regulations, including those related to occupational health and safety, the environment and government contracts; significant transaction and transition costs that we will continue to incur after the acquisition; the interests of our controlling shareholder, which may not be consistent with other shareholders; our significant indebtedness, which may adversely affect our financial condition, limit our available cash and our access to additional capital, prevent us from developing our business and increase our risk of default; significant operational and financial restrictions imposed by the agreements governing our existing debt; and uncertainties related to our variable rate debt. For a more complete description of these and other possible risks and uncertainties, please see the Company’s Annual Report on Form 10-K for the fiscal year ended. December 31, 2020 and its subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. These cautionary statements should not be construed by you as being exhaustive and speak only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Brian Perman, Vice President, Investor Relations
See original content to download multimedia: https://www.prnewswire.com/news-releases/custom-truck-one-source-acquires-hirail-leasing-group-301461453.html
SOURCE Custom Truck One Source, Inc.