NES Rentals Sold (2006-5-25)

Diamond Castle Holdings, a private equity firm, has acquired the assets of NES Rentals Holdings for $850 million including the assumption of certain liabilities.

Under the terms of the agreement, Diamond Castle will acquire all of NES Rentals\’ oustanding common stock 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 January 12, 2006, the day on which the Company announced it would explore strategic alternatives.

"After undergoing significant change in recent years, NES Rentals has emerged as a well-positioned and profitable business," says Andrew Studdert, NES chairman and CEO. "The progress we have made allowed us to be in a position to consider options to unlock the value of our Company."

In December 2005, NES Rentals began reviewing strategic alternatives which included the option of selling the company.

"When completed, this deal will allow NES Rentals to continue to meet and exceed the high standards we\’ve established for customer service, quality equipment and financial growth." Bear, Stearns & Co. Inc. and Houlihan Lokey Howard & Zukin each provided fairness opinions on the transaction to the Board of Directors.

The sale is expected to be completed in 60 days, contingent on closing conditions, including regulatory approvals, delivery of the committed financing, and the approval of NES Rentals\’ stockholders. NES Rentals has scheduled a special meeting of stockholders to vote on the proposed transaction that will be held on June 23, 2006. NES Rentals set a record date of May 26, 2006 for the special meeting.

Studdert will continue in his capacity as CEO and Chairman.

For more information visit www.nesrentals.com

(Source: AED)