WillScot and Mobile Mini have announced the completion of their merger, creating a North American leader in modular space and portable storage solutions worth approximately $6.6 billion. Shareholders gave their approval at the end of June.
The merged company is called WillScot Mobile Mini Holdings Corp and is headquartered in Phoenix, Arizona, US.
The combined 2019 revenues of the two companies is approximately $1.7 billion, and adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) came to about $650 million.
Brad Soultz, President and CEO of WillScot, said, “The closing of this strategic and financially compelling merger creates a stronger and more diverse company that is better positioned for the future.”
Benefits of the merger include a diversified customer base, a broad geographic footprint, increased scale, and multiple levers for growth driven by enhanced product and service offerings as well as cost savings.
The combined company is expecting to realise $50 million in annual cost synergies.
Soultz said, “The combination of our two great companies creates a leading provider of modular space and portable storage solutions, with a broadened footprint and expanded fleet ideally positioned to benefit from the cross-selling of WillScot’s Ready to Work solutions and Mobile Mini’s managed services offerings.”
He added, added, “During our time working with the Mobile Mini team, it is clear that our cultures are aligned, which gives me great confidence in our ability to execute and realise the value inherent in this combination.”
WillScot ranked 11th in this year’s IRN100 listing of the world’s largest rental companies, generating 2019 revenues of just over $1 billion (€946 million). Specialising in modular space and portable storage rental, it has a fleet of approximately 150,000 units and 120 depots throughout the US, Canada and Mexico.
Mobile Mini ranked 23rd in this year’s IRN100, with 2019 revenues of almost $600 million (€518 million). The portable storage rental specialist has a fleet of about 200,500 storage and office units, and about 12,800 tanks and pumps. It operates in the US, the UK and Canada, through a network of 155 depots.
Kelly Williams, Mobile Mini’s President and CEO, said, “We expect these two highly successful organisations to become even stronger together as our teams apply best practices and drive efficiencies across the combined business, providing even higher levels of premium service for our customers and further increasing value for our shareholders.”
The transaction is expected to close in third quarter of 2020.
Following the close of the transaction, Soultz will become CEO of the combined company, while Williams will serve as President and Chief Operating Officer (COO).
Also, Tim Boswell, WillScot’s Chief Financial Officer (CFO), will serve as CFO of the combined company, and Chris Miner, Mobile Mini’s General Counsel, will serve as General Counsel of the combined company.
WillScot stockholders will own 54% of the combined company, while Mobile Mini stockholders will own 46%