Temporary accommodation specialist Algeco Scotsman has agreed to merge its North American operations with Modular Space Corp (ModSpace) to create a new business owned 50/50 by each company.
The company said the “merger of equals” would create a new company with a fleet of around 150000 units and 1800 employees across the US, Canada and Mexico.
Algeco said the deal would see its modular space business in the region combined with ModSpace’s business. It added that its European, Asian and remote accommodation businesses were not part of the merger transaction and would remain part of Algeco Scotsman.
The combined company would be led by chairman Gerry Holthaus and CEO Charles Paquin. Mr Holthaus is the chairman of Algeco Scotsman and was previously CEO and president of Williams Scotsman, Algeco Scotsman’s North America business, for more than a decade.
Mr Paquin is the CEO of ModSpace with 20 years of executive leadership experience including 15 years in the modular building industry.
The transaction, subject to a number of conditions, would see each company own around half the equity in the merged business, while Algeco Scotsman would receive additional cash consideration in connection with its contribution of its North American modular space business.