Custom Truck One Source Acquires the Business of SOS Fleet Services, LLC, Expanding Gulf States Footprint and Service Capabilities
Custom Truck One Source, Inc. (CTOS) acquires SOS Fleet Services, in Alexandria, Louisiana, expanding its service footprint. The acquisition brings a 30,000 square feet facility and experienced team, enhancing rental product offerings and repair services. With planned branch openings, CTOS aims to increase its national footprint to 39 locations, improving customer service.
The acquisition of SOS Fleet Services by Custom Truck One Source represents a strategic expansion of their service footprint, particularly in the Alexandria region. From a market research perspective, entering a vibrant community with existing industry ties, such as the powerline sector, indicates a targeted growth strategy. The addition of 30,000 square feet of space and a seasoned team could provide Custom Truck with a competitive edge, potentially increasing their market share in the rental and repair service industry.
Furthermore, the expansion to 39 locations aligns with broader industry trends where companies are scaling up their physical presence to bolster regional service capabilities. This expansion might be seen as a response to customer demand for more accessible services and could lead to improved customer satisfaction and retention. The long-term benefits could include stronger brand recognition and increased revenue streams from a broader customer base.
From a financial standpoint, the acquisition's impact on Custom Truck One Source's balance sheet and future earnings is a key consideration. The initial investment in acquiring SOS Fleet Services and the associated costs of integrating the new branch will need to be weighed against the anticipated increase in revenue from the expanded service offerings. Given the CEO's statement, stakeholders can infer that the company expects these new locations to contribute positively to the bottom line.
Investors will be interested in how this acquisition affects the company's earnings per share (EPS) and whether the expansion aligns with the company's capital allocation strategy. The increase in the company's national footprint should ideally lead to economies of scale, which could result in reduced operating costs per unit and improved profitability over time. However, it will be important to monitor how efficiently Custom Truck can integrate the new locations and capitalize on the expected synergies.
Operationally, the integration of SOS Fleet Services into Custom Truck One Source's existing network is a complex task that requires careful planning and execution. The announcement mentions the new branch's ability to offer a full breadth of rental products and repair services, which implies a need for operational alignment and standardization across all locations. Ensuring that the new team is integrated smoothly and that the service quality remains consistent across the expanded footprint will be important for maintaining customer trust and loyalty.
Additionally, the operational efficiencies gained from this acquisition, such as shared resources and best practices, could lead to improved service delivery times and cost savings. The long-term operational benefits of this expansion could include more robust supply chain management and a more agile response to market demands.
03/18/2024 - 09:35 AM
KANSAS CITY, Mo. --(BUSINESS WIRE)--
Custom Truck One Source, Inc. (NYSE: CTOS) proudly announces its acquisition of the business of SOS Fleet Services, LLC, a full-service repair facility located in Alexandria, Louisiana . This acquisition brings over 30,000 square feet of space and a highly experienced team that will significantly enhance Custom Truck’s service footprint in the region. Our new Alexandria branch is poised to offer the full breadth of Custom Truck’s rental product offering, as well as repair service, to customers in the area.
This acquisition, along with the recently announced 2024 planned branch openings in Casa Grande, AZ , Sacramento, CA and Salt Lake City, UT , will increase Custom Truck's national footprint to 39 locations, from its previous 35. Our footprint expansion will enable us to better serve our customers, ensuring readiness and capability to meet their needs.
Ryan McMonagle, CEO of Custom Truck One Source, highlighted the significance of the acquisition, saying, "The acquisition of the business of SOS Fleet Services marks an important step in our continued efforts to expand our footprint to better serve our rental fleet and our customers. We are thrilled for the opportunity to expand into Alexandria , a vibrant community that has deep roots in the powerline industry. We are excited to welcome the SOS Fleet Services team to the Custom Truck family and look forward to the invaluable contributions they will make to our customers and our team."
ABOUT CUSTOM TRUCK ONE SOURCE
Custom Truck One Source 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 , with a differentiated “one-stop-shop” business model. CTOS 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. The Company's coast-to-coast rental fleet of more than 10,300 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 customtruck.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240318756321/en/
Brian Perman, Vice President, Investor Relations
investors@customtruck.com
Source: Custom Truck One Source, Inc.
What is the ticker symbol of Custom Truck One Source, Inc. mentioned in the press release?
The ticker symbol is CTOS.
Where is the acquired business of SOS Fleet Services located?
The acquired business is located in Alexandria, Louisiana.
How many square feet does the acquisition bring to Custom Truck One Source?
The acquisition brings over 30,000 square feet of space.
How many branch openings are planned by CTOS in 2024?
CTOS has planned branch openings in Casa Grande, AZ, Sacramento, CA, and Salt Lake City, UT in 2024.
What is the CEO of Custom Truck One Source, Ryan McMonagle, emphasizing about the acquisition?
Ryan McMonagle highlights the significance of the acquisition in expanding the company's footprint to better serve customers.
What industry does Alexandria, Louisiana have deep roots in according to the press release?
Alexandria, Louisiana has deep roots in the powerline industry according to the press release.
