Form 4: Platinum Equity Acquires Significant Stake in Custom Truck One Source

Platinum Equity, LLC has acquired 8,143,635 shares of Custom Truck One Source, Inc. common stock at $4 per share, increasing its total holdings to 156,743,635 shares.

Summary

• Platinum Equity, LLC acquired 8,143,635 shares of Custom Truck One Source, Inc. common stock on January 30, 2025.
• The purchase price was $4 per share.
• Following the transaction, Platinum Equity's total beneficial ownership in Custom Truck One Source is 156,743,635 shares.
• The shares are indirectly held through a complex structure of entities, ultimately controlled by Platinum Equity, LLC and Tom Gores.
• Multiple entities within the Platinum Equity structure are filing separate Form 4s due to electronic filing system limitations.

Sentiment

Score: 7

Explanation: The document indicates a significant investment by a major shareholder, which is generally a positive sign. However, the complex ownership structure and disclaimers of beneficial ownership introduce some uncertainty.

Positives

• Platinum Equity's increased stake demonstrates a continued investment in Custom Truck One Source.
• The acquisition of a large number of shares could indicate confidence in the company's future prospects.

Risks

• The complex ownership structure could make it difficult to track the ultimate beneficial ownership of the shares.
• The filing mentions that the entities and Mr. Gores disclaim any beneficial ownership except to the extent of their pecuniary interests, which could indicate a potential for future changes in ownership.

Industry Context

This transaction reflects ongoing investment activity in the industrial equipment and services sector, where private equity firms like Platinum Equity often seek to acquire and grow companies.

Comparison to Industry Standards

• Private equity firms often acquire significant stakes in companies they believe have growth potential, similar to Platinum Equity's investment in Custom Truck One Source.
• The complex ownership structure is not uncommon for private equity investments, where multiple entities are often used for tax and liability purposes.
• The size of the acquisition, over 8 million shares, is significant and indicates a strong commitment from Platinum Equity.

Stakeholder Impact

• The increased stake by Platinum Equity could be viewed positively by shareholders, potentially increasing confidence in the company's future.
• The transaction may not have a direct impact on employees, customers, or suppliers in the short term.

Key Dates

Keywords

Platinum Equity, Custom Truck One Source, CTOS, share acquisition, beneficial ownership, Tom Gores, SEC Form 4