Algeco Scotsman sells North American business
By Murray Pollok22 August 2017
The world’s largest portable accommodation and storage rental company Algeco Scotsman is to sell its North American business, Williams Scotsman, to Double Eagle Acquisition Corp (DEAC) for US$1.1 billion.
DEAC is an acquisitions vehicle founded in the US in mid-2015. It will own 70% of Williams Scotsman, with the remaining 30% owned by TDR Capital, Algeco Group’s controlling shareholder.
The deal will see Gerry Holthaus, currently Chairman of the Algeco Group and a former Chairman and CEO of Williams Scotsman, return to the North American business as Chairman. Current CEO Brad Soultz and CFO Tim Boswell will continue to manage Williams Scotsman.
Williams Scotsman generated revenues of US$424 million in the year to 30 June 2017, with the remaining Algeco Group reporting sales of $1,049 million from businesses in Europe, Australia, New Zealand and China.
The sale does not include the remote accommodation business Target Logistics, which will remain with Algeco Group, including Target’s operations in North America.
Diarmuid Cummins, CEO of Algeco Scotsman, said; “We are very excited about the sale of Williams Scotsman to Double Eagle Acquisition Corp. This sale will not only enable Williams Scotsman to continue to build upon its position as the industry innovator and market leader but will also allow Algeco Scotsman to continue to improve its balance sheet and reduce its total debt outstanding.”
Under the deal, the new Williams Scotsman business will be publicly traded on the NASDAQ exchange. Its six board directors will comprise two designated by DEAC and four by TDR Capital.
In addition to paying off debt, the proceeds of the sale will allow Algeco to complete its previously announced acquisitions of Iron Horse Ranch – a provider of remote accommodation – and the portable accommodation division of Touax.