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Why Nesco Holdings Stock Just Exploded 46% Higher

Why Nesco Holdings Stock Just Exploded 46% Higher

Tiny Nesco Holdings (NYSE:NSCO) stock got a lot bigger Thursday morning, after the rental fleet operator (which rents out bucket trucks, cranes, and similar specialized vehicles to electric utilities and other companies that use them for infrastructure repairs) announced what it called a "transformative transaction" involving both a large equity investment and an even larger acquisition. As the company advised this morning, private equity firm Platinum Equity is investing $850 million to acquire a majority interest in Nesco, buying newly issued shares at $5 each. Other, existing Nesco private equity investors will put a further $100 million into the company -- also by buying newly issued stock at $5.