Priveq Investment divests 21grams to Unifiedpost Group

Priveq

Priveq Investment IV (”Priveq”) has, after a successful ownership period including three add-on acquisitions, entry into new geographies and a broadened service offering, together with the other owners divested 21grams (“21grams”) to the Belgian fintech company Unifiedpost Group.

 21grams serves companies handling large volumes of communication to optimize and digitalize these volumes to strengthen the companies’ businesses and customer relations. Headquartered in Stockholm 21grams has about 70 employees and revenue of approximately 770 MSEK. Customers include AGA, Länsförsäkringar, Rädda Barnen, ST1, Tele2, Unicef and Vasakronan.

Under Priveq’s ownership, 21grams has grown organically and through several acquisitions that has established the company into new geographies and with a broadened service offering. Revenue has grown from approximately 500 MSEK at the time of Priveq’s investment to approximately 770 MSEK today, with increased profitability.

Through 21grams innovative and agile culture the company’s offering has developed well according to increased digitalisation and demand for payment solutions. From the digital offering originally representing a small share of the product mix, the company today handles about every fourth e-invoice in Sweden.

”21grams has been developing strongly during our time as owner. The company has through its ability to innovate and its perceptiveness to its customers continued to grow and build on its already strong position. Through Unifiedpost Group’s acquisition of 21grams new opportunities to strengthen the customer value and to continue as a platform for Nordic expansion arise. 21grams’ great culture and committed employees has been of uttermost importance for our successful journey” says Louise Nilsson, Partner at Priveq Advisory AB, advisor to Priveq Investment IV and retiring board member of 21grams.

”Together with Priveq we have created structure and put down the foundation for a continued strong growth journey into new markets and new offerings. We are very pleased with the Priveq-cooperation throughout the years, especially with regards to acquisitions and strategy. The 21grams management team is excited about Unifiedpost Groups strong growth agenda that will support us in taking the next step in 21grams’ journey” says Stefan Blomqvist, CEO of 21grams.

 

For additional information contact:
Louise Nilsson, Partner and Investment Manager, Priveq Advisory AB
Tel: +46 (0)709 50 95 50
louise.nilsson@priveq.se

Stefan Blomqvist, CEO, 21grams
Tel. + 46 (0)76 808 21 21
stefan.blomqvist@21grams.com

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Kinnevik participates in funding round in Budbee lead by AMF

Kinnevik

Kinnevik AB (publ) (“Kinnevik”) today announced an investment of SEK 105m in a SEK 525m funding round in Budbee, the Swedish logtech company offering sustainable, last mile delivery services for e-commerce. The round is led by AMF, one of Sweden’s leading pension companies, one of the largest owners on Nasdaq Stockholm and one of Kinnevik’s largest shareholders.

Budbee is the market leader in home delivery services in Sweden, with operations also across Finland, Denmark, and the Netherlands. Budbee has solved the last mile challenge through a purpose-built technology platform offering a new level of convenience for e-commerce customers, and in a sustainable way. Merchants who choose the service as their default delivery method have seen customers increasing their average order value and purchase frequency; and the service is used by major brands such as ASOS, Zalando, and H&M.

Budbee was founded by Fredrik Hamilton in 2015 on the back of his frustration of the inefficiency of last mile delivery services. The company has grown rapidly and currently delivers over a million parcels per month. In December 2020, the company increased the number of deliveries by over 200 percent compared to December 2019. The company expects to accelerate growth further in 2021 with the new funding round, mainly focusing on international expansion and product innovation.

The funding round was led by AMF which is one of Sweden’s leading pension companies, one of the largest owners on Nasdaq Stockholm and one of Kinnevik’s largest shareholders. With the investment of SEK 240m AMF becomes one of Budbee’s largest shareholders. Kinnevik first invested in Budbee in 2018 and is the company’s largest owner. In addition to AMF and Kinnevik, current investors Stena Sessan and H&M also participated in the funding round.

Kinnevik’s CEO Georgi Ganev commented: “Last mile delivery is key to customer satisfaction in e-commerce, and Fredrik and his team has built Budbee into the go-to option for a frictionless last-mile delivery experience across its markets. We are excited to partner with AMF, also a co-owner in MatHem, in this funding round to continue Budbee’s successful expansion in new and existing markets, as well as the expansion of its product suite Budbee Boxes”.

For further information, visit www.kinnevik.com or contact:

Torun Litzén, Director Investor Relations
Phone +46 (0)70 762 00 50
Email press@kinnevik.com

Kinnevik is an industry focused investment company with an entrepreneurial spirit. Our purpose is to make people’s lives better by providing more and better choice. In partnership with talented founders and management teams we build challenger businesses that use disruptive technology to address material, everyday consumer needs. As active owners, we believe in delivering both shareholder and social value by building long-term sustainable businesses that contribute positively to society. We invest in Europe, with a focus on the Nordics, the US, and selectively in other markets. Kinnevik was founded in 1936 by the Stenbeck, Klingspor and von Horn families. Kinnevik’s shares are listed on Nasdaq Stockholm’s list for large cap companies under the ticker codes KINV A and KINV B.

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Ivanhoé Cambridge and PAG launch a Japan Logistics Venture with $400M of Investment Capacity

Cdpq

Ivanhoé Cambridge and PAG are pleased to announce the launch of a new Japan Logistics Venture, with a capacity to deploy up to US$400M for logistics assets in Japan. The new platform will develop and acquire for longer-term hold high-quality core logistics facilities especially in urban and last mile locations.

George Agethen, Senior Vice-president Asia-Pacific at Ivanhoé Cambridge, said: “Logistics has proven to be highly resilient during this pandemic and will remain a key focus in the coming years, especially in Asia Pacific, where we are already invested in Singapore, Australia, China, India and Indonesia. We’re delighted to launch this new investment strategy in Japan and this venture will significantly accelerate our capacity to grow and diversify our portfolio in this key Asian market.”

“This Partnership continues the roll-out of our global conviction for logistics, and in that global context, these chosen target cities in Japan are attractive as they are highly urbanized, have low vacancies and there is significant room to grow in their e-commerce penetration rates”, he added.

“We have a great respect for Ivanhoé Cambridge as investors, and we are very pleased to be deepening our relationship with them,” said Jon Paul Toppino, PAG Group President and Managing Partner of PAG Real Estate. “PAG has been investing in Japan real estate since 1997, with a comprehensive knowledge of local markets and a strong track record. We expect the logistics sector in Japan to remain a durable and attractive opportunity, and we look forward to working with Ivanhoé Cambridge as they continue to grow their portfolio in the region.”

E-commerce keeps driving demand for logistics facilities and remains in an expansionary mode in Japan, where the stock of modern, high-grade logistics properties is scarce and in high demand. The venture will take advantage of these strong fundamentals and address third party logistic tenants’ increasing demand for high quality space in greater Tokyo and greater Osaka, with potential for tactical investments in greater Nagoya.The new venture will assemble and operate a diversified portfolio of logistics properties through the acquisition of both income producing and development assets.

The venture will have over US$400 million in investment capacity and has already identified a pipeline of opportunities for its investment program. It will be governed by an investment committee composed of Ivanhoé Cambridge, as majority shareholder in the venture, and PAG, which will operationally manage the venture.

This joint venture reinforces the strategic partnership between Ivanhoé Cambridge and PAG, which started with a first investment in 2017.

Ivanhoé Cambridge holds a global, diversified real estate portfolio of approximately C$64 billion AUM across 5 continents, primarily in the industrial and logistics, office, residential and retail sectors.

About Ivanhoé Cambridge

Ivanhoé Cambridge develops and invests in high-quality real estate properties, projects and companies that are shaping the urban fabric in dynamic cities around the world. It does so responsibly, with a view to generate long-term performance. Ivanhoé Cambridge is committed to creating living spaces that foster the well-being of people and communities, while reducing its environmental footprint.

Ivanhoé Cambridge invests internationally alongside strategic partners and major real estate funds that are leaders in their markets. Through subsidiaries and partnerships, the Company holds interests in more than 1,000 buildings, primarily in the industrial and logistics, office, residential and retail sectors. Ivanhoé Cambridge held C$64 billion in real estate assets as at December 31, 2019 and is a real estate subsidiary of the Caisse de dépôt et placement du Québec (cdpq.com), one of Canada’s leading institutional fund managers. For more information: ivanhoecambridge.com.

About PAG

PAG is one of the world’s largest Asia -focused private investment firms, with experience across asset classes and market cycles. PAG’s 200 investment professionals have deep experience in their local markets, working out of nine key offices in Asia and around the world. PAG Real Estate has been an active investor in Asia since 1997, with more than $31 billion in capital invested in nearly 7,000 properties. PAG currently manages US$40 billion in capital on behalf of more than 150 leading institutional investors from Europe, North America, Asia, Australia and the Middle East. For more information please visit www.pag.com.

For more information

Ivanhoé Cambridge Public Affairs +1 866-456-3342 media@ivanhoecambridge.com

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H.I.G. Capital Invests in Makios Logistics

H.I.G. Europe

LONDON – January 7, 2021 – H.I.G. Capital, LLC (“H.I.G.”), a leading global alternative investment firm with $43 billion of equity capital under management, announced today that one of its affiliates has invested in Makios Logistics SA (Makios or the “Company”) a leading provider of integrated logistics services and a market leader in temperature-controlled warehousing in Greece.

Founded in 1927, the Company is strategically located next to the port of Thessaloniki. Makios currently owns and operates two state of the art logistics assets in Thessaloniki and also owns logistics assets and land north of Athens with significant expansion potential. As a result of its special custom status, the Company is strongly positioned to increase its share of international trade flows.

Riccardo Dallolio, Managing Director and Head of H.I.G. Europe Realty Partners, commented: “This marks our 9th Industrial & logistics real estate investment in Europe. The sector continues to be an attractive asset class for H.I.G. driven by strong investment fundamentals and secular tailwinds. More specifically, the Piraeus and Thessaloniki ports are two key logistics hubs not only at a national but also at a European level and we believe Makios is strongly positioned to capture an increasing share of trade flows”.

Stelios Theodosiou, Principal at H.I.G. Europe Realty Partners, added: “We are partnering with the Company and its management as the ideal platform to grow and execute on H.I.G.’s logistics strategy in the region. Makios already possesses state of the art facilities and systems and together with H.I.G.’s hands-on operational approach, we plan to grow it into a regional champion. This transaction is another example of our ability to source off-market deals with significant value-add potential. We look forward to supporting the Makios team through the Company’s next exciting phase of organic and inorganic growth”.

About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $43 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Rio de Janeiro, São Paulo and Bogotá, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach:

  1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
  2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
  3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.

Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

* Based on total capital commitments managed by H.I.G. Capital and affiliates.

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AURELIUS subsidiary NDS Group AS acquires Norwegian distributor Sola Shipping AS

Aurelius Capital

Munich/Oslo, December 23, 2020 – The NDS Group AS, a subsidiary of AURELIUS Equity Opportunities SE & Co. KGaA (ISIN: DE000A0JK2A8), acquires the Norwegian marine distributor Sola Shipping AS, one of Norway’s leading distributors of marine chemicals and boat care products. This first add-on acquisition confirms the growth strategy of the NDS Group and further increases the share in the Norwegian market. The transaction also underlines Aurelius’ strategy to strengthen its portfolio companies via add-ons.

Sola Shipping AS offers a wide range of marine supplies to over 800 customers in Norway. The assortment ranges from antifouling, paint, and chemicals, over to service parts, boat care, and consumables. The company is an exclusive distributor of the brand “Seajet” in Norway with market leading products.

The highly complementary product portfolios will be integrated into the existing marine business unit of the NDS Group. Customers of both companies will greatly benefit from the combined business that is built on the nation-wide logistic infrastructure of the NDS Group.

“The acquisition of Sola Shipping AS confirms the growth strategy to continue the new era as a one-stop-shop distribution and service provider in the Nordic region” says NDS Group CEO Janno Gröne. “We are confident that the NDS Group will also benefit from synergies of this add-on acquisition”.

Leif Lupp, Managing Director Aurelius Nordics: “After having executed the carve-out of NDS, Aurelius’ operations organisation has implemented substantial operational improvements. We have also invested significantly in topline growth, as evidenced by our new customer wins in 2020. With the acquisition of Sola Shipping, the next phase of the Aurelius value creation model has now been launched. We are looking forward to continuously growing NDS through acquisitions, in Norway as well as throughout the Nordics.”

The transaction was completed on December 23, 2020.

Aurelius was advised on the transaction by Handelsbanken (Financial), Schjødt (Legal) as well as KPMG (Tax).

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Fast Group partners with CVC to expand logistics operations

Investing through CVC Capital Partners Asia IV, CVC will support Fast’s further expansion across the Philippines.

The Fast Group, a leading end-to-end logistics group in the Philippines, today announced that it has finalized its partnership with leading global private equity firm CVC Capital Partners. Investing through CVC Capital Partners Asia IV, CVC will support Fast’s continued development and further expansion across the Philippines.

Founded by the Chiongbian Family, Fast has been steadily growing for over four decades, from its roots in William Lines, a publicly listed shipping company in the 1990s, to become a leader in end-to-end logistics. The business delivers supply chain solutions that meet the world-class standards and requirements of multinationals and large organisations operating in the Philippines, while at the same time nurturing its strong roots with the local communities in which the business operates.

CVC is a leading global private equity company, with a long track record of building businesses in Asia, having been active in the region for over 20 years. This deep experience will be essential in accelerating Fast’s growth and increasing its footprint through mergers and acquisitions, and in the digitalization of its logistics operations through investments in technology.

William Chiongbian, Group President and CEO of Fast Group commented: “Fast is the market leader in the growing Philippine logistics sector, our clients greatly value our broad offering which spans the entire supply chain from logistics and warehousing, to distribution and transportation. The investment in Fast by CVC is a testament to the attractiveness and potential of the Philippine logistics sector, the market leading business we have built over the last four decades, and of course the economy more broadly. We are delighted to be partnering with such an experienced investor as we now seek to accelerate our growth.”

Brice Cu, Managing Director, CVC Capital Partners, said: “We are pleased to finalize our partnership with Fast. Having agreed to invest in the business in 2019, we have now been working closely with the business for a year and have made excellent progress on a number of important strategic initiatives, most notably in building a pipeline of attractive acquisition opportunities.”

UBS AG, Singapore Branch acted as exclusive financial adviser to Fast Logistics Group in relation to its partnership with CVC.

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EQT Infrastructure acquires Molslinjen, Denmark’s largest passenger ferry company

eqt

  • EQT Infrastructure acquires Molslinjen, a critical part of Denmark’s domestic transport network, linking major population centers and creating connectivity between regions as well as connecting several important islands to the mainland
  • Molslinjen contributes to increased economic activity and social development as an enabler of movement of passengers and goods across its network of “floating bridges”
  • EQT Infrastructure will support Molslinjen’s continued sustainability agenda through investments in the decarbonization of the ferry fleet and the acceleration of the transition to renewable fuel sources

EQT is pleased to announce that EQT Infrastructure has entered into a definitive agreement to acquire Molslinjen A/S (”Molslinjen” or “the Company”) from a group of shareholders led by Polaris.

Molslinjen is headquartered in Aarhus, Denmark and was established in 1963 as a single route operator creating a shortcut between Jutland and Zealand, thereby also a connection between the country’s two largest cities. Since then, the Company has grown into Denmark’s largest passenger ferry company with over 700 employees and 15 vessels serving over eight million people per year across nine routes, including connections to Sweden and Germany. Molslinjen generated revenues of around DKK 1.9 billion in 2019.

Operating in a country of many islands, Molslinjen is a critical part of Denmark’s transportation infrastructure. Its routes constitute a network of “floating bridges” that link Denmark’s major population centers and connect several important islands with the mainland. As an enabler of movement of passengers and goods, Molslinjen contributes to Denmark’s local and regional economic activity and social development.

Molslinjen’s long-term development is supported by strong secular trends, such as a steady population growth, increased urbanization, climate consciousness, and increasing domestic travel. The Company is well-positioned to capitalize on these shifts with its state-of-the-art ferry fleet, serving the most important travel corridors in the country.

Over the past decade, Molslinjen has reduced the CO2 emission per transported kg with over 60 percent. In the years to come, the Company will continue to invest in increased decarbonization of its ferry fleet and reduction of fossil fuel dependence. EQT Infrastructure is committed to supporting the Company’s transition to electrified ferries on selected routes and introducing renewable fuel sources for larger vessels. Moreover, EQT Infrastructure will focus on customer service improvements, such as refitting of the vessel layout, increased departure frequency and higher passenger capacity on popular routes.

Daniel Pérez, Partner at EQT Partners: “We have followed Molslinjen closely for years and are tremendously impressed with its transformation into an indispensable element of the Danish transport infrastructure, under the leadership of Carsten Jensen and his management team. The next development phase of Molslinjen will be defined by the Company’s ambitious sustainability agenda and continued investments in electrification and renewable fuel sources. In parallel, we also believe that there is scope to further build on Molslinjen’s successful inorganic growth strategy. Taken together, these investments will further future-proof the Company, and we look forward to embarking on this journey together with Carsten and the management team.”

Carsten Jensen, CEO of Molslinjen, said: “We are excited to team up with EQT Infrastructure, they are a highly strategic partner who will bring both the industry expertise and financial muscles to support Molslinjen’s green development plans. We now look forward to setting sail towards the next chapter in our growth journey together with EQT.”

The transaction is subject to customary conditions and approvals and is expected to close in early 2021.

EQT was advised by Danske Bank and DC Advisory (M&A / Financing), Accura (Legal), EY (Financial and Tax), McKinsey (Commercial) and Arup (Technical).

With this transaction, EQT Infrastructure V is expected to be 20-25 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication) based on its target fund size, and subject to customary regulatory approvals.

Contact
Daniel Pérez, Partner at EQT Partners and Investment Advisor to EQT Infrastructure, +4673 314 99 87
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a purpose-driven global investment organization with more than EUR 75 billion in raised capital and over EUR 46 billion in assets under management across 16 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and North America with total sales of more than EUR 27 billion and approximately 159,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
Follow EQT on LinkedIn, Twitter, YouTube and Instagram

About Molslinjen
Molslinjen is Denmark’s largest passenger ferry company with over 700 employees and 15 vessels serving over eight million people per year across nine routes, including connections to Sweden and Germany. Molslinjen generated revenues of around DKK 1.9 billion in 2019. In cooperation with Herning Turist, Molslinjen is operating busses under the brand Kombardo Expressen on direct busroutes to/from Copenhagen – Aarhus, Aalborg, Randers, Holstebro, Herning, Silkeborg and Rønne.

More info: www.molslinjen.dk

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Nesco Holdings to Acquire Custom Truck One Source and Create Leading Specialty Rental Equipment Company in Partnership with Platinum Equity

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Platinum

Press Release · December 03, 2020

Transformative transaction resulting in greater scale and enhanced depth and breadth of products and services to better serve highly attractive infrastructure-related end-market customers

Platinum Equity, the premier financial sponsor in the specialty rental equipment industry, has committed to invest over $850 million in Nesco and will hold a majority interest in the combined company

Nesco lead investors, Energy Capital Partners and Capitol Investment, and existing CTOS lead investor, Blackstone, to remain ongoing shareholders in partnership with Platinum Equity

Combination significantly reduces leverage, includes material synergies and substantially enhances both corporate and public market liquidity

Fort Wayne, Indiana – December 3, 2020 – Nesco Holdings, Inc. (NYSE: NSCO, “Nesco” or the “Company”) today announced it has entered into a definitive agreement to acquire Custom Truck One Source (“CTOS”) for a purchase price of $1.475 billion. Nesco and CTOS are leading providers of specialized truck and heavy equipment solutions including rental, sales and aftermarket parts and service.

The combination will create a leading, one-stop-shop provider of specialty rental equipment serving highly attractive and growing infrastructure end-markets, including transmission and distribution (“T&D”), the 5G revolution build-out and critical rail and other national infrastructure initiatives. With complementary business lines, customer bases and capabilities, the combination is expected to yield significant benefits from increased scale, breadth of product and service offerings and expanded geographic coverage. Following closing, the combined company will have a more attractive financial profile with significantly reduced leverage and enhanced liquidity providing flexibility to address anticipated demand in the large and growing addressable market in which it operates.

In connection with the transaction, an affiliate of Platinum Equity, LLC (“Platinum”) has committed to invest over $850 million into Nesco in exchange for newly issued common stock at a price of $5.00 per share. In addition, existing CTOS shareholders, including certain funds managed by The Blackstone Group, Inc. (“Blackstone”), in its capacity as the current majority owner of CTOS, and certain members of the CTOS management team, are expected to invest approximately $100 million into Nesco in exchange for newly issued common stock also at the same price as Platinum. Energy Capital Partners (“ECP”) and Capitol Investment (“Capitol”), who together currently own ~70% of Nesco’s outstanding common stock, will retain their entire ownership positions in Nesco and have entered into voting agreements in support of the transaction. Subject to closing mechanics and an additional equity investment of up to $200 million, upon closing, Platinum is expected to own approximately 57% of Nesco’s common stock, with existing CTOS shareholders owning approximately 7%, ECP owning approximately 10% and Capitol owning approximately 3%. The additional equity investment of up to $200 million is targeted to be raised between signing and closing with a Platinum backstop for $100 million.

There will be approximately 259 million shares outstanding at closing assuming the full $200 million of additional equity is raised.  The transaction is anticipated to also be financed with a new $750 million ABL, of which approximately $400 million will be drawn at closing, and $900 million of high yield notes.  Pro forma net debt at closing is projected to be approximately $1.3 billion.

“Since Capitol’s investment in Nesco last year, our number one strategic priority has been to find a way to bring these two companies together, given the significant value inherent in the combination. With enhanced scale, a broader set of capabilities and vastly improved financial flexibility, we believe the new company will be distinctively well-positioned to take advantage of the anticipated growth in critical U.S. infrastructure efforts in energy, telecom and rail over the near term and beyond,” said Mark Ein, Chairman & CEO of Capitol and Vice Chairman of Nesco. “We are very pleased to partner with Platinum given its deep knowledge and strong track record in the equipment rental industry, as well as the existing CTOS shareholders led by Blackstone. Together with Platinum and our other co-investors and the combined company’s Board and management team, we look forward to capturing the meaningful upside opportunities that lie ahead.”

“This is a powerful team of investors coming together to create value,” said Tom Gores, Chairman and CEO of Platinum Equity. “We will deploy our industry knowledge and global operating expertise to maximize the potential of this investment.”

Platinum Equity was previously the majority owner of Nesco from 2011 to 2014, and has been a long-time, successful investor in a wide range of specialty rental businesses.

“This is a powerful team of investors coming together to create value,” said Tom Gores, Chairman and CEO of Platinum Equity. “We will deploy our industry knowledge and global operating expertise to maximize the potential of this investment.”

“We know these companies and the industry extremely well and we have a well-defined playbook for creating value in this space,” said Louis Samson, Partner at Platinum Equity. “We also have a deep bench of operations professionals specialized in merger integration and business transformation who will help bring Nesco and CTOS together, building on the best attributes of each. We expect the combination will create a compelling industrial growth company with strong fundamentals and multiple ways to drive EBITDA organically or through additional M&A.”

“We are excited to bring together our complementary companies to provide a full range of solutions to our customers,” said Fred Ross, Chief Executive Officer of CTOS. “I want to thank our dedicated employees for all that they do each day. Looking ahead, as a combined company, we will be very well positioned to capitalize on a broad range of growth opportunities and better serve our customers’ specialty rental equipment needs on a national basis. We look forward to working together with the Nesco team to realize substantial synergies that will create meaningful value for all our stakeholders.”

John-Paul (JP) Munfa, Managing Director at Blackstone, added, “We at Blackstone are proud to have played a role in the establishment of CTOS, in partnership with Fred Ross and other CTOS shareholders, and have seen the company more than double in size during our ownership. We believe the additional scale and public market access provided by the transaction are the next logical step in the company’s evolution, and we are pleased to invest in a transaction carrying significant commercial benefits for the company’s customers, in partnership with Platinum, Capitol, ECP and Nesco’s existing shareholders.”

“This combination will create new opportunities for our company, our employees and the customers we serve,” said Lee Jacobson, Chief Executive Officer of Nesco. “Nesco and CTOS are a perfect fit and together will be well positioned to pursue numerous opportunities in the rapidly growing specialty rental segment. We couldn’t have reached this milestone without the hard work of our team, and we look forward to working together with CTOS to ensure a seamless transition.”

Strategic Combination Creates a Compelling Industrial Growth Company

  • Enhanced value proposition to customers through “one-stop-shop” national platform. The combined company will offer customers a full suite of solutions across the specialty rental equipment value chain, including equipment rental, new sales, used sales, aftermarket parts and service and retail parts, tools and accessories. Together, the combined company will operate on a national scale with over 1,800 employees, 46 company-operated locations and a rental fleet that will be nearly double in size with almost 9,000 units and more than $1.3 billion in combined original equipment cost (“OEC”).
  • Favorable exposure to highly attractive end-markets with strong fundamentals. The combined company’s core end-markets will include T&D, telecom, rail and infrastructure, all of which benefit from strong secular growth and macro mega trends, as well as limited downside cyclicality. The combined company’s increased scale and national presence will provide significant opportunities to further penetrate new and existing customers across geographies and end-markets.
  • Integrated platform with scale and differentiated offerings. The combination will create a unique business model that should drive a better customer experience and a significant increase in the number and breadth of rental assets available. With a substantially increased rental fleet, scale-enabled purchasing benefits, maximum production and customization flexibility and a well-established new and used sales business, the new company will be better positioned to serve customers and win business.
  • Significant anticipated cost synergies with additional revenue upside opportunities. Nesco and CTOS expect to achieve approximately $50 million in run-rate annual cost synergies within two years of closing. Cost savings are expected to be realized through back office consolidation, procurement and SG&A efficiencies and service and production optimization. The combined company also expects additional upside opportunities from identified revenue synergies via expanded service offerings and cross-selling opportunities and fleet synergies.
  • Compelling financial profile with strong momentum and ample flexibility. The combined company expects to deliver pro forma 2020 adjusted EBITDA of approximately $337 million including run-rate cost synergies and pro forma 2021 adjusted EBITDA of $380 million to $400 million including run-rate cost synergies, as well as meaningful free cash flow as core end-market activity continues to grow. At closing, the combined company expects to benefit from more than $300 million in liquidity and a reduction in net leverage from 6.3x to 3.9x, based on last twelve months ended September 30, 2020 adjusted EBITDA including run-rate cost synergies.

Leadership and Headquarters

At closing, the Nesco Board of Directors will be reconstituted such that Blackstone, ECP and Capitol each retain one board seat and Platinum holds majority voting power of the Board. Together, the parties will work to drive value for all shareholders.

Mr. Ross is expected to serve as CEO of the combined business. The combined company will be headquartered at the CTOS campus in Kansas City with significant operations maintained in Indiana. Additional details, including plans for integrating the respective brands, will be addressed post close by a transition team comprising representatives from each of the companies.

Approvals

The transaction has been unanimously approved by the Nesco Board of Directors and is expected to close in the first quarter of 2021, subject to shareholder approval and other customary conditions. ECP and Capitol have entered into voting agreements in support of the transaction.

Advisors

J.P. Morgan Securities LLC is serving as financial advisor to Nesco and Latham & Watkins LLP is serving as legal counsel. Citi is serving as financial advisor to CTOS and Kirkland & Ellis LLP is serving as legal counsel.

Debt financing commitments have been obtained by Bank of America, who will be leading the financing.
Hughes Hubbard & Reed LLP is serving as legal counsel to Platinum.

Conference Call and Webcast

Representatives of Nesco, CTOS, Capitol and Platinum will host a conference call today, December 3, 2020, at 8:30 a.m. ET to discuss the transaction. The conference call can be accessed by dialing +1 877-524-8416 (U.S. and Canada only) or +1 412-902-1028.

A live webcast of the conference call will be available on the investor relations section of Nesco’s website at https://investors.nescospecialty.com/events-and-presentations/default.aspx#upcoming-events.

ABOUT NESCO

Nesco is one of the largest providers of specialty equipment, parts, tools, accessories and services to the electric utility transmission and distribution, telecommunications and rail markets in North America. 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. Nesco’s coast-to-coast rental fleet of more than 4,000 units includes aerial devices, boom trucks, cranes, digger derricks, pressure drills, stringing gear, hi-rail equipment, repair parts, tools and accessories. For more information, please visit investors.nescospecialty.com.

ABOUT CUSTOM TRUCK ONE SOURCE

CTOS is a leading provider of specialized truck and heavy equipment solutions to the utility, telecommunications, rail and infrastructure markets in North America. CTOS solutions include rentals, sales, aftermarket parts and service, equipment production, manufacturing, financing solutions, and asset disposal. With vast equipment breadth, CTOS’ team of experts service its customers across an integrated network of 26 locations across North America. For more information, please visit www.customtruck.com.
Additional Information About the Acquisition and Where to Find It
This communication is being made in respect of the proposed acquisition of CTOS by Nesco. A special meeting of the stockholders of Nesco will be announced as promptly as practicable to seek stockholder approval in connection with the proposed acquisition. Nesco expects to file with the Securities and Exchange Commission (“SEC”) a proxy statement and other relevant documents in connection with the proposed acquisition. The definitive proxy statement will be sent or given to the stockholders of Nesco and will contain important information about the proposed transaction and related matters. INVESTORS AND STOCKHOLDERS OF NESCO ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER RELEVANT MATERIALS CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT NESCO, CTOS AND THE ACQUISITION. Investors may obtain a free copy of these materials (when they are available) and other documents filed by Nesco with the SEC at the SEC’s website at www.sec.gov, at Nesco’s website at www.nescospecialty.com or by sending a written request to Nesco Holdings, Inc., 6714 Pointe Inverness Way, Suite 220, Fort Wayne, Indiana 46804, Attention: Chief Financial Officer and Secretary.
Participants in the Solicitation
Nesco and its directors, executive officers and certain other members of management and employees may be deemed to be participants in soliciting proxies from its stockholders in connection with the acquisition.  Information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of Nesco’s stockholders in connection with the acquisition will be set forth in Nesco’s definitive proxy statement for its special stockholder meeting. Additional information regarding these individuals and any direct or indirect interests they may have in the acquisition will be set forth in the definitive proxy statement when it is filed with the SEC in connection with the acquisition. You can find information about Nesco’s directors and executive officers in Nesco’s filings with the SEC, including Nesco’s definitive proxy statement for its 2020 Annual Meeting of Stockholders, which was filed with the SEC on May 1, 2020.
Forward-Looking Statements
Certain statements contained in this communication may be considered forward-looking statements within the meaning of U.S. securities laws, including section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the proposed transaction and the ability to consummate the proposed transaction. When used in this communication, the words “potential,” “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify 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 outside Nesco’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: the ability to consummate the acquisition of CTOS and to integrate the acquisition into the Nesco business; failure to obtain necessary stockholder and regulatory approvals or to satisfy any of the other conditions related to the acquisition of CTOS; the ability to realize expected synergies and the timing for any such realization; projected financial results for Nesco and CTOS, including on a combined basis; potential litigation associated with the acquisition of CTOS; the potential impact of the announcement of the acquisition of CTOS on Nesco’s or CTOS’s relationships, including with suppliers, customers, employees and regulators; the impact of the COVID-19 pandemic on Nesco’s or CTOS’s business operations, as well as the overall economy; Nesco’s ability to execute on its plans to develop and market new products and the timing of these development programs; Nesco’s estimates of the size of the markets for its solutions; the rate and degree of market acceptance of Nesco’s solutions; the success of other competing technologies that may become available; Nesco’s ability to identify and integrate acquisitions, including the acquisition of truck utilities; the performance and security of Nesco’s services; potential litigation involving Nesco; and general economic and market conditions impacting demand for Nesco’s services. For a more complete description of these and other possible risks and uncertainties, please refer to Nesco’s annual report on form 10-K filed with the securities and exchange commission on March 13, 2020 and quarterly report on form 10-Q filed with the securities and exchange commission on May 7, 2020, as well as to Nesco’s subsequent filings with the SEC. Should one or more of these material risks occur, or should the underlying assumptions change or prove incorrect, Nesco’s actual results, performance, achievements or plans could differ materially from those expressed or implied in any forward-looking statement. The forward-looking statements contained herein speak only as of the date hereof, and Nesco undertakes 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.
NESCO INVESTOR CONTACT

Josh Boone, CFO
(800) 252-0043
investors@nescospecialty.com

PLATINUM INVESTOR CONTACT

Dan Whelan
Principal, Platinum Equity
dwhelan@platinumequity.com

MEDIA CONTACT

Joele Frank, Wilkinson Brimmer Katcher
Jim Golden / Tim Lynch
212-355-4449

Investor Relations
and Media Contacts:

Mark Barnhill
Partner
+1 310.228.9514 E-mail Mark

Dan Whelan
Principal
+1 310.282.9202 E-mail Dan

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Permira Growth Opportunities agrees to acquire minority stake in Full Truck Alliance

Permira

Permira, the global private equity firm, announced that a company backed by the Permira Growth Opportunities Fund (“PGO” or the “Fund”) has agreed to acquire a minority stake in Full Truck Alliance Co. Ltd. (“FTA” or “Manbang”), China’s largest online B2B marketplace for commercial freight, connecting truckers and shippers. The Permira Growth Opportunities Fund is the lead new investor in this fundraising round which saw a total equity raise of US$1,690 million from new and existing investors.

FTA is the leading online commercial freight platform in China in the full-truck-load (FTL) segment. Its mobile applications provide match-making services to shippers, third-party logistics providers and truck drivers in China’s road freight logistics market, improving transportation efficiency by reducing transaction costs and the number of empty return loads. With 1.9 million and 5 million monthly active shippers and truckers respectively on the platform, FTA has captured a significant share of market participants and freight traffic across the country. The platform has also become the leading ecosystem for value-added services, including electronic toll collection, financial and energy services for commercial trucking in China.

Robin Bell-Jones, Partner at Permira Hong Kong, said: “This exciting investment in FTA represents PGO’s first investment in China and is a strong fit for the Fund, building on Permira’s track record of backing leading online marketplaces and tech-enabled logistics businesses, including Allegro in Europe and Lytx in the US.”

Speed Liu, Investment Director at Permira Shanghai, added: “FTA is a pioneer serving China’s vast and rapidly growing commercial trucking market. With COVID-19 accelerating the demand for efficient logistics in China, FTA is exceptionally well-placed to continue to build a more efficient market and expand its services for both shippers and truckers across China.”

Media contacts

Nina Suter Head of Communications – Director +44 (0) 207 632 4037

Sendcloud raises €12.6 million in Series B funding to expand its all-in-one shipping platform for e-commerce

AXA

Scale-up plans recruitment of 200 new employees to accelerate growth
November 16th 2020, London – Sendcloud, the leading e-commerce shipping platform in
Europe, today announced it has closed a €12.6 million Series B Round. The new investment
will enable the company to open up the global delivery market by enhancing its international
expansion and ongoing development of the international shipping platform. The funding round
was led by AXA Venture Partners with participation from existing investors BOM, Bonsai
Partners and accompanied by a loan from Rabobank. Prior investors also include HenQ, TiiN
Capital and Startupbootcamp.

With the full support of investors, Sendcloud will continue to expand its vision to strengthen
the market position of online stores by optimizing their shipping- and returns process. This
streamlined process reduces the costs of shipping for online stores and helps them to meet
consumers’ demands, enabling them to compete with larger e-tailers on a global scale.
Sendcloud offers 50+ integrations, including all leading e-commerce platforms and
marketplaces like Amazon, Etsy, Shopify, WooCommerce and Wix. The all-in-one shipping
platform is currently active in 8 European countries, of which the latest is the UK, Europe’s
largest e-commerce market.

Over the past years the Dutch scale-up has made huge steps in simplifying the shipping
process for online retailers. However, growing parcel volumes and increasing customer
demands create new challenges in the field of e-commerce logistics. A global shipping network
will contribute to opening up the complex delivery market for all, providing online stores of all
sizes with the tools to compete against the e-commerce giants.

The funding enables Sendcloud to integrate more local and global carriers and further
automate the shipping process, allowing consumers to choose their desired delivery option no
matter where they live. The investment builds on an exceptional year for Sendcloud, due to
the explosive growth in e-commerce and the recent expansion to the UK. To support the
sudden increase in customers, the company has grown from 120 to 260 employees in just one
year. The new funds will be used to hire 200 new employees to accelerate this rapid growth
and enter new markets.

“We first spoke to the Sendcloud team over three years ago and they have continually
delivered on their plans, we are excited to support their continued international expansion with
this growth investment,” said Imran Akram, General Partner of AXA Venture Partners (AVP).
“Over the past few years, Sendcloud has evolved into a mature shipping solution that helps
online retailers to compete with major e-commerce companies. Due to the explosive growth
of e-commerce and increasing customer demands, we see new opportunities to further
improve the shipping experience,” said Rob van den Heuvel, CEO and Co-founder of
Sendcloud. “By hiring talented people, we can realize our ambitions to simplify cross-border
shipping and take e-commerce businesses to new heights.”

About Sendcloud
Sendcloud is an all-in-one shipping platform for e-commerce businesses that want to scale. It
is our mission to empower online retailers to compete by optimizing the full shipping journey
from checkout to returns. Our solution turns e-commerce logistics from a bottleneck into an
accelerator, making shipping a competitive advantage.
Founded in the Netherlands in 2012, Sendcloud has quickly become one of the fastest growing
scale-ups and leading shipping solutions in Europe, with more than 15,000 customers across
the UK, France, Germany, Spain, Italy, Belgium and Austria. Customers range from small to
enterprise-sized online retailers and in industries from fashion and electronics to food & drink.
Technology is at the heart of Sendcloud. With a SaaS-model as a starting point, the company
has evolved over the years from a simple API to an all-in-one platform that automates the
entire shipping process. From choosing multiple carriers to automating returns, Sendcloud
makes shipping a virtue of necessity. Our passion for tech drives us to improve our platform
everyday to ensure retailers and consumers can count on the best shipping solution ever. By
optimizing the shipping process for retailers, the consumer experience is taken to a higher
level. As a result, handing over a parcel is no longer a simple business transaction, but part of
the customer experience, creating a win-win situation for both online retailers and consumers.

About AXA Venture Partners (AVP)
AXA Venture Partners (AVP) is a global venture capital firm investing in high-growth,
technology enabled companies. AVP has built, in less than five years, a unique investment
platform specialized in tech investments with $800 million of assets under management
through three pillars of investment expertise: early stage, growth stage, and fund of funds. To
date, AVP has invested in more than 45 companies and more than 20 funds. The AVP team
operates globally with offices in San Francisco, New York, London, Paris, and Hong Kong.
Beyond investments, AVP provides unique access to business development opportunities
helping portfolio companies to scale globally and accelerate their growth. More details
here: www.axavp.com