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NES Rentals sold for $850 million

NES Rentals Holdings Inc. recently announced it has concluded its strategic review process and has signed a definitive agreement to be acquired by affiliates of Diamond Castle Holdings, LLC, a New York-based private equity firm. The transaction is valued at approximately $850 million, including the assumption of certain liabilities.

Under the terms of the agreement, Diamond Castle will acquire all of the outstanding common stock of NES Rentals for $18.75 per share in cash. The purchase price per share represents a 42-percent premium to the company's closing price per share of $13.25 on Jan. 12, 2006, the day on which the company announced it would explore strategic alternatives.

NES Rentals Chairman and Chief Executive Officer Andrew Studdert says the implentation of a series of operating and revenue initiatives during the past two years has improved return on investment. "After undergoing significant change in recent years, NES Rentals has emerged as a well-positioned and profitable business," he says. "The progress we have made allowed us to be in a position to consider options to unlock the value of our company."

Completion of the sale is expected by the end of July. It is contigent upon customary closing conditions, including regulatory approvals, delivery of the committed financing and the approval of NES Rentals' stockholders.

Studdert has agreed to continue on in his capacity as CEO and chairman of the board following the completion of the transaction. Diamond Castle expects to retain NES Rentals' company name, management team and product lines.