Capitol Investment Corp. IV, a public investment vehicle, and Nesco Holdings I, Inc., a provider of specialty rental equipment to the electric utility, telecom and rail end-markets, has recently closed its merger. In connection with the consummation of the merger, the combined company was renamed Nesco Holdings, Inc. The shares of common stock and warrants of the combined company began trading on the New York Stock Exchange and NYSE MKT on August 1, 2019, under the symbols NSCO and NSCO WS, respectively.
Nesco offers its specialized equipment to a diverse customer base for the maintenance, repair, upgrade and installation of critical infrastructure assets including electric lines, telecommunications networks and rail systems. With a nationwide rental fleet of about 4,200 units, Nesco provides its customers a vast and comprehensive product offering along with a focus on service. As a one-stop shop, Nesco also offers its customers the parts, tools and accessories needed to fully equip their crews for activity in the field. The company has demonstrated strong financial performance with an Adjusted EBITDA margin of 49% in 2018 and a 24% compound annual growth rate of Adjusted EBITDA from 2016 to 2018.
"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 and its attractive unit economics, we believe that Nesco will create substantial long-term value for its shareholders," said Mark Ein, chairman and CEO of Capitol.
Capitol shareholders elected seven directors to serve on the board of the combined company. William Plummer, who served as the CFO of United Rentals during a decade of substantial growth and shareholder value creation, will serve as chairman of the board. Jeffrey Stoops, who has been CEO of SBA Communications Corp. for the last 17 years of transformational growth in wireless infrastructure, has also joined the board. The board also includes Mark Ein, Dyson Dryden, president and CFO of Capitol, Doug Kimmelman, senior partner and founder of Energy Capital Partners ("ECP"), Rahman D'Argenio, an ECP partner, and CEO Lee Jacobson.
Nesco's current management team, led by Jacobson and CFO Bruce Heinemann, will continue to run the combined company.
"We are thrilled to embark on the next phase in Nesco's growth story as a publicly listed company in partnership with Capitol, ECP, William Plummer and Jeffrey Stoops," Jacobson said. "We continue to see robust growth in demand across all of our end markets and remain focused on executing our plan to deliver the significant growth we see ahead."
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 served as exclusive financial advisor to Nesco. Latham & Watkins LLP and Graubard Miller acted as legal advisors to Capitol and Kirkland & Ellis LLP acted as legal advisor to Nesco and ECP.
