Prospect Partners and Management
Acquire Industrial Hoist Services From National Equipment Services
Leading Hoist Company
Primed for New-Market Growth
10, 2005: Prospect Partners, LLC along with management, has acquired
the assets of NES Industrial Hoist of Brazoria, Texas from its publicly
traded parent company NES Rental Holdings, Inc. of Chicago.
NES Industrial Hoist is
the national market leader specializing in the rental, service and
sale of pneumatic, electrical and mechanical powered chain hoists
and winches ranging in capacity from 1/2 to 100 tons. The equipment
is supplied to power plants, refineries, shipyards and other large
industrial users throughout North America. Typical applications
include plant shutdowns, routine repair and maintenance, new construction
and overhead hoist/crane safety inspection work. The company also
provides certification services for overhead hoists and winches.
The new company will operate under the name of Industrial Hoist
In the acquisition, Prospect
Partners partnered with the division's management team of James
G. Kowalik, General Manager, who founded the business in 1983 and
will continue to run its day-to-day operations as President along
with current executives Mark Atnip - Operations, Anthony Piwonka
- Sales and Ed Gonzales - Service.
Kevin P. Rodgers, the
former Chief Executive Officer and founder of NES, who also partnered
with Prospect Partners in the acquisition as an independent equity
sponsor, will oversee Industrial Hoist as CEO.
"I am very excited
about the opportunity to partner with James, his team and Kevin
-- all are true industry veterans who know the industrial hoist
and equipment rental market extremely well," says Louis W.
Kenter, a Principal at Prospect Partners.
Over time, Industrial
Hoist has solidified its market niche and become a true industry
leader, with the largest rental fleet of hoists, winches and related
rigging available in the United States. In addition to its main
facility in Brazoria, Texas, the company operates branches in Columbus,
Ohio; Atlanta, Georgia and Geismar, Louisiana.
Although part of a large
publicly traded company, Industrial Hoist didn't precisely fit with
NES Rental's traditional, general equipment rental business, Kenter
says. Industrial Hoist was a niche market provider with a very specialized
product and service crews trained primarily to inspect, maintain,
repair and certify sophisticated industrial heavy lifting and rigging
Kenter continues, "We
see significant opportunities for growth, including the ability
to further develop the market for new construction as well as markets
such as the certifying, load-testing and maintenance of hoists,
overhead cranes and winches."
CEO Mr. Rodgers will be
based in Chicago, working with Prospect on other specialized industrial
hoist equipment and rental transactions. "This was a difficult
deal to get done, and Prospect was able to leverage its relationships
to close and bring it to conclusion in a timely fashion," he
"We had numerous
choices in the equity markets to complete this deal," recalls
Industrial Hoist President Mr. Kowalik. "The fact is from our
first meeting with Prospect, their 'open' listening style made it
very clear we had found a real partner. The whole team at Industrial
Hoist is very excited about the future and our prospects for growth.
Personally, reuniting with Kevin Rodgers is extra special; we have
known each other for eight years and work extremely well together.
I knew it was only a matter of time before we joined forces again
with the opportunity to build a unique company, using Industrial
Hoist as a foundation."
The acquisition of Industrial
Hoist Services marks the second platform of Prospect Partners II,
a $165 million private equity fund that closed in June, 2004.
Mr. Kenter and Mr. Rodgers
will serve the company as Chairman and Director, respectively.
About Prospect Partners
Prospect Partners, LLC
of Chicago, Illinois is a leading investor in unique lower-middle-market
companies, managing two private equity funds totaling $270 million.
Since its inception in 1998, Prospect Partners has focused on management-led
leveraged acquisitions and has invested in more than 40 leading
companies within many niche consumer, commercial, specialty distribution
and service markets throughout the United States.