Willscot Mobile Mini Holdings Corp. has announced its plans to acquire McGrath RentCorp in a cash-and-stock deal. The deal values McGrath RentCorp at approximately $1.6 billion, including debt. Willscot Mobile Mini is a leading provider of modular space and portable storage solutions, while McGrath RentCorp specializes in rental solutions for modular buildings, portable storage containers, electronic test equipment, and liquid and solid containment tanks.
Under the terms of the agreement, McGrath RentCorp shareholders will receive $9.05 in cash and 1.32 shares of Willscot Mobile Mini for each McGrath RentCorp share they own. This represents a premium of approximately 15% to McGrath RentCorp’s closing price on February 4, 2022. The combined company is expected to have a pro forma enterprise value of approximately $7.5 billion and will operate under the Willscot Mobile Mini name.
The acquisition of McGrath RentCorp will enhance Willscot Mobile Mini’s position as a leader in the modular space and portable storage solutions industry. The combined company will benefit from increased scale, a broader product portfolio, and expanded geographic reach. It will also have a diverse customer base across various end markets, including construction, education, healthcare, government, retail, and events.
Brad Soultz, the CEO of Willscot Mobile Mini, expressed excitement about the deal, stating that the acquisition of McGrath RentCorp is a strategic fit that aligns with their long-term growth objectives. He also emphasized the complementary nature of the two companies’ products, services, and customer bases, which will create significant synergies and value for shareholders.
The transaction is expected to close in the second quarter of 2022, subject to customary closing conditions and regulatory approvals. Upon completion, McGrath RentCorp shareholders will own approximately 17% of the combined company. The leadership team of Willscot Mobile Mini will continue to lead the combined company, leveraging their expertise and experience to drive growth and operational excellence.
Overall, the planned acquisition of McGrath RentCorp by Willscot Mobile Mini Holdings Corp. represents a significant strategic move in the modular space and portable storage solutions industry. The combined company will have increased scale, a broader product portfolio, and expanded geographic reach, allowing it to better serve its diverse customer base across various industries. With the transaction expected to close in the second quarter of 2022, both companies are looking forward to the synergies and value creation that will result from this deal.
