Williams Scotsman has acquired US-based portable unit rental company ModSpace, in a deal worth US$1.1 billion (€940 million).
ModSpace is a privately-owned company, with assets worth €940 million. It offers office trailers, portable storage units and modular buildings, and last year generated revenues of US$453 million (€390 million), while its EBITDA was US$106 million (€91 million).
Once combined, Williams Scotsman will have over 160,000 modular space and portable storage units serving a large customer base from approximately 120 locations across the US, Canada and Mexico. Williams Scotsman said it expected to benefit from US$60 million (€51.5 million) in annual cost synergies after integration, with approximately 80% of the forecast synergies expected to come into force on a full run-rate basis by the end of 2019.
The acquisition is the company’s first major coup since it became a company in its own right. It was previously part of Algeco Scotsman, until the latter sold Williams last year.
Brad Soultz, president and CEO of Williams Scotsman, said, “ModSpace is highly complementary to our business which, when combined with Williams Scotsman, provides our shareholders with a transformational value creation opportunity. Through the combination of the best talent, practices and assets of the two companies, we expect to create an even stronger and more agile partner for our customers and vendors.
“We are excited about the potential to further diversify our customer end-markets, create a more balanced asset portfolio and extend our geographic footprint.”
Meanwhile, Charles Paquin, CEO for ModSpace, said, “We are excited for the opportunities the merger will create for our customers and employees. Bringing these two premier organisations together will result in a world-class business capable of delivering an unparalleled customer experience.”