WillScot (NASDAQ:WSC) Mobile Mini Holdings Corp. (WSC) known for its innovative temporary space solutions, has announced a definitive agreement to acquire McGrath RentCorp (MGRC), a prominent business-to-business rental company based in Livermore, California.
The transaction structure is a combination of cash and stock, with McGrath RentCorp shareholders receiving $123 per share. It breaks down to 60% in cash and 40% in stock, granting McGrath shareholders an approximately 12.6% stake in the merged entity.
“I’m excited to welcome the McGrath team to the WillScot Mobile Mini family,” said Brad Soultz, Chief Executive Officer of WillScot Mobile Mini.
“The transaction will further accelerate our growth, with combined 2023 pro forma revenue of $3.2 billion and adjusted EBITDA of $1.4 billion, we will be on path to achieve a $700 million free cash flow run-rate twelve months after we close.”
This blend of payment methods offers McGrath shareholders both immediate cash value and continued investment in the combined company's future, the company said in a press release.
The deal is anticipated to be finalized in the second quarter of 2024.
BofA Securities was the financial advisor for WillScot Mobile Mini. Rothschild & Co provided financing advice, and Allen & Overy LLP served as the legal counsel.
On McGrath's side, Goldman Sachs & Co. LLC acted as the financial advisor, and Morrison & Foerster LLP was the legal counsel.
MGRC rose 10% while WSC dropped 0.7% on the news.