Investment firm Energy Capital Partners LLC (ECP) has agreed to buy a Fort Wayne, Ind.-based provider of electrical-utility equipment for an undisclosed price.
The target, Nesco, is a utility fleet equipment service for the North American electrical transmission and distribution market. The sale marks an exit for Platinum Equity LLC, which partnered with private equity firm Hammond Kennedy Whitney & Company Inc. in October 2011 to buy a controlling interest in Nesco from an investor group that included the company’s founder Rob Troxel.
Since then, Nesco has grown through two add-on acquisitions, including the August 2012 purchase of the utility equipment fleet and related assets of Penske's utility rental division, as well as the December 2012 acquisition of Utility Equipment Leasing Corp.
The deal was announced on the heels of Platinum’s most recent transaction. The Beverly Hills, Calif.-based private equity firm picked up Volvo Construction Equipment Rents LLC, a provider of construction equipment rental services, from Volvo AB, for $1.1 billion in cash, in a leveraged buyout transaction.
The transaction also caps off an active year for ECP. The Short Hills, N.J.-based firm completed an acquisition of nuclear waste handler Energy Solutions Inc. in May, a deal valued at $1.1 billion. Before that, ECP picked up Bear Tracker Energy LLC through portfolio company Summit Midstream Partners LLC in January for $513 million, as well as three merchant generation power stations from Dominion (NYSE: D) for $650 million in March.