Fri. 14 Jan 2022, 4:07pm ETBenzinga
In: M&A

-Custom Truck One Source, Inc. completed the acquisition of HiRail Leasing Group, a leader in rental equipment for the Canadian rail market, for $46.0 million.
-The HiRail acquisition accelerates growth in Custom Truck's rental segment, and further extends Custom Truck's geographic footprint in Canada with two new locations in Ontario and Alberta while strengthening relationships with leading Canadian rail customers.
-The acquisition is expected to be immediately accretive and was funded with cash on hand and drawings on Custom Truck's existing credit facility.

KANSAS CITY, Mo., Jan. 14, 2022 /PRNewswire/ -- Custom Truck One Source, Inc. (NYSE:CTOS, ", CTOS", or the ", Company", ))) today announced the completion of the acquisition of HiRail Leasing, Northshore Rail Contracting and Heavy Equipment Repairs (collectively, "HiRail" or the "HiRail Leasing Group") for $46.0 million, subject to fleet and other customary purchase price adjustments.

With over 600 rental units, HiRail is among the largest rail equipment rental providers in Canada and serves Canada's leading railways and rail contractors. HiRail's two locations in Ontario and Alberta will also extend Custom Truck's geographic reach in the region. HiRail has a diverse rental fleet including light duty, medium duty and heavy-duty trucks fitted with a wide array of attachments including rail gear, grapples, knuckles, mechanic and welding equipment and snowplows and also provides complementary upfitting and repair services.

"We are excited to welcome HiRail to the Custom Truck team," said Custom Truck CEO Fred Ross. "This acquisition allows us to accelerate growth in our core rental business. We will leverage our one stop shop capabilities in rental, sales, equipment upfitting, and service to meet the critical equipment needs of new and existing customers across Canada. We are impressed with the business HiRail has built in Canada and look forward to working with all of their existing employees."

"HiRail has earned the trust of Canada's leading rail customers by providing reliable, best-in-class service for over thirty years," Ryan McMonagle, Custom Truck President & COO said. "We look forward to carrying on that tradition and building on that reputation to expand our presence in Canada and to support our customers, employees and communities."

The HiRail acquisition was financed with cash on hand as well as drawings on Custom Truck's existing credit facility.