What Is The Symbol Of Capitol Investment Corp. Iv a publicly-traded investment entity, and Nesco Holdings I, Inc. (“Nesco”), a prominent provider of specialized rental equipment catering to the electric utility, telecom, and rail sectors, are delighted to announce the successful closure of their merger. Concurrent with the merger’s completion, the newly combined entity has been rebranded as Nesco Holdings, Inc. The common stock and warrants of the merged company are anticipated to commence trading on the New York Stock Exchange and NYSE MKT on August 1, 2019, under the symbols NSCO and NSCO WS, respectively.
Nesco extends its specialized equipment offerings to a diverse clientele engaged in the maintenance, repair, upgrade, and installation of critical infrastructure assets, including electrical lines, telecommunications networks, and rail systems. With a nationwide rental fleet comprising approximately 4,200 units, Nesco delivers an extensive and comprehensive product range along with an unwavering commitment to service excellence. Serving as a one-stop solution provider, Nesco equips its customers not only with equipment but also with the essential parts, tools, and accessories, ensuring their field teams are fully prepared. Nesco’s long-lived equipment assets provide highly appealing economic returns, as evidenced by its robust financial performance, boasting a 49% Adjusted EBITDA margin in 2018 and a remarkable 24% compound annual growth rate of Adjusted EBITDA from 2016 to 2018.
Mark Ein, Chairman and CEO of Capitol, expressed his enthusiasm regarding the merger, stating, “We are excited to have closed our merger with Nesco and look forward to working with the Nesco team and the company’s world-class board to execute on the substantial opportunity that we believe Nesco’s infrastructure end markets present. With a combination of the strong demand for Nesco’s equipment across electric utility transmission and distribution, 5G deployment, and rail development, coupled with its attractive unit economics, we believe that Nesco will create substantial long-term value for its shareholders.”
Capitol’s shareholders have elected seven directors to serve on the board of the combined company. William Plummer, former CFO of United Rentals during a decade marked by substantial growth and shareholder value creation, has been appointed Chairman of the board. Jeffrey Stoops, who has served as CEO of SBA Communications Corp. for the past seventeen years during a transformative era in wireless infrastructure, has also joined the board. The board further comprises Mark Ein, Dyson Dryden (President and CFO of Capitol), Doug Kimmelman (Senior Partner and founder of Energy Capital Partners), Rahman D’Argenio (an ECP partner), and CEO Lee Jacobson.
Nesco’s existing management team, led by Mr. Jacobson and CFO Bruce Heinemann, will continue to steer the combined company.
Mr. Jacobson conveyed his excitement about the future, remarking, “We are thrilled to embark on the next phase of Nesco’s growth story as a publicly listed company in partnership with Capitol, ECP, William Plummer, and Jeffrey Stoops. We continue to witness robust demand growth across all our end markets and remain steadfast in executing our plan to deliver the significant growth we foresee.”
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., and J.P. Morgan Securities LLC served as financial and capital markets advisors to Capitol, while Morgan Stanley & Co. LLC acted as the exclusive financial advisor to Nesco. Legal advisory services were provided by Latham & Watkins LLP and Graubard Miller for Capitol, and Kirkland & Ellis LLP for Nesco and ECP.
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About Nesco
Nesco is one of North America’s largest providers of specialized equipment, parts, tools, accessories, and services for the electric utility transmission and distribution, telecommunications, and rail markets. Nesco offers specialized equipment to a diverse customer base, supporting the maintenance, repair, upgrade, and installation of critical infrastructure assets such as electrical lines, telecommunications networks, and rail systems. Nesco’s extensive rental fleet, spanning approximately 4,200 units, encompasses aerial devices, boom trucks, cranes, digger derricks, pressure drills, stringing gear, hi-rail equipment, repair parts, tools, and accessories.
About Capitol Investment Corp. IV
Capitol Investment Corp. IV was formed as a publicly traded investment vehicle with the objective of facilitating mergers, acquisitions, or similar business combinations. Capitol was led by Chairman and Chief Executive Officer Mark D. Ein, along with President and Chief Financial Officer L. Dyson Dryden. Capitol’s securities were listed on the New York Stock Exchange under the ticker symbols CIC, CIC WS, and CIC.U. The company conducted an initial public offering in August 2017, raising $402.5 million in cash proceeds. Capitol Investment Corp. IV represents the fourth publicly traded investment vehicle led by the Capitol team. Their previous ventures include the creation of Two Harbors Investment Corp. (NYSE: TWO), a prominent mortgage real estate investment trust (REIT), the merger with Lindblad Expeditions, Inc. (NASDAQ: LIND), a global leader in expedition travel, and the merger with Cision Ltd. (NYSE: CISN), a leading global provider of cloud-based earned media solutions.
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Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The use of words such as “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose,” and similar expressions (or their negative versions) is intended to identify forward-looking statements. These forward-looking statements are subject to a variety of known and unknown risks, uncertainties, assumptions, and other important factors, many of which are beyond Capitol’s or Nesco’s control. These factors could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors that may affect actual results or outcomes include the inability to recognize the anticipated benefits of the business combination, costs related to the business combination, Nesco’s ability to execute its plans to develop and market new products, market acceptance of Nesco’s solutions, success of competing technologies, integration of acquisitions, performance and security of Nesco’s services, potential litigation, and general economic and market conditions impacting demand for Nesco’s services. Neither Capitol nor Nesco undertakes any obligation to update or revise any forward-looking statements, except as required by law.
