Mobile Mini in US$450 million deal
14 November 2014
US-based portable storage rental company Mobile Mini has continued its acquisition trail with a deal to buy Texas-based specialty containment provider Evergreen Tank Solutions (ETS) for US$450 million (€361 million).
The deal followed a string of purchases so far this year, including its acquisitions in September of an unnamed portable storage business in Ft Wayne, Indiana, and another unnamed portable storage business in Florida.
Mobile Mini said the latest deal saw it acquire a company which directly served large, blue-chip customers in the petrochemical, industrial and energy sectors.
It said ETS was the leader in integrated liquid and solid containment solutions in the Gulf region, and was the third largest provider of these services in the US.
It said the business had a fleet of over 10000 units comprised predominantly of steel tank containers, roll-off and vacuum boxes and stainless steel tank trailers.
Erik Olsson, Mobile Mini president and CEO, said, “The acquisition of ETS is perfectly aligned with our growth strategy and meets our four stated criteria for adding new product lines to our existing portfolio in that it provides front and back end synergies, a rental fleet with similar asset characteristics as our containers, a similar return and cash flow profile to our containers, and critical mass and scalability.”
The company had approximately 300 employees in 28 locations throughout the country and was expected to report full-year 2014 revenues of US$108 million (€87 million) with adjusted earnings before interest, tax, depreciation and amortisation of US$45 million (€36 million). The transaction was expected to close by the end of 2014.
Mr Olsson said, “Demand trends in ETS’ primary markets are favourable, driven by increasing waste streams from industrial plants, greater frequency of facility maintenance and more stringent environmental regulations.
“We are very pleased to be adding a well-positioned, high quality product offering to our existing platform and see significant growth opportunities for ETS going forward, including leveraging Mobile Mini’s nationwide presence.”
