Willscot Mobile Mini, a provider of modular space and portable storage solutions, has announced its plans to acquire McGrath RentCorp in a cash-and-stock deal. The deal, which is valued at approximately $1.6 billion, will allow Willscot Mobile Mini to expand its presence in the modular space and portable storage industry.
Under the terms of the deal, McGrath RentCorp shareholders will receive 60% of the consideration in Willscot Mobile Mini stock and 40% in cash. This strategic move is aimed at creating a stronger and more diversified company with enhanced growth prospects. The combined company is expected to generate significant cost synergies and create value for both shareholders and customers.
The acquisition will also broaden the range of products and services offered by Willscot Mobile Mini, providing customers with a wider selection of modular space and portable storage solutions. Additionally, the combined company will benefit from increased scale and efficiency, enabling it to better serve its customers and drive long-term growth.
The deal is subject to regulatory approvals and is expected to close in the second quarter of 2022. Upon completion of the acquisition, McGrath RentCorp will become a wholly-owned subsidiary of Willscot Mobile Mini, and its common stock will cease to be traded on the NASDAQ stock exchange.
In response to the news, industry analysts have expressed positive sentiments about the potential benefits of the merger. Many believe that the combination of Willscot Mobile Mini and McGrath RentCorp will lead to a stronger, more competitive company with the ability to offer a wider range of innovative solutions to its customers. Additionally, the synergies and cost savings resulting from the acquisition are expected to create value for shareholders in the long term. Overall, the market response to the announcement has been favorable, with both companies’ stock prices experiencing a boost following the news.