16.04.2007

NES sells tank business

NES (National Equipment Services) has made another divestment, selling its tank business to Odyssey Investment Partners, a private equity company that has just divested itself of Neff another top 10 US rental company.

The proceeds from the sale of the tank business will be used to reduce debt. The tank division has a fleet of about 6,200 units which are largely rented to the Petrochemical, waste and environmental industries.

NES was acquired last year by private equity company Diamond Castle Holdings and is apparently investigating a flotation. It sold Shaughnessy cranes services last month to Amquip as part of this programme.

Andrew P. Studdert, NES Rentals chairman and chief executive officer, said, “The sale of the tank business is consistent with the company’s strategy to concentrate on the aerial equipment rental business. We have made significant investments in our fleet, having spent almost $300 million in new equipment since 2004, and have increased our emphasis on equipment maintenance, reliability and enhanced customer service. Meeting our customers’ needs continues to be our number one priority.”

The NES tank business will be re-branded as Evergreen: Randy Paulson, a managing principal of Odyssey said “We are pleased to acquire this market-leading business serving the growing petrochemical, natural gas production and environmental waste services industries. Under the continued leadership of CEO Jeff Havens, who ran the business under NES, we expect that Evergreen will achieve continued success.”