WillScot sells UK storage arm
By Belinda Smart14 December 2022
North American modular accommodation and storage specialist WillScot Mobile Mini has agreed to sell its UK storage business to Algeco for £335 million (€390 million).
Algeco is part of the Modulaire Group, the portable accommodation rental businesss operating in Europe and Asia Pacific.
Algeco has one of the largest fleet of accommodation units in the UK, operating from 23 hubs nationwide.
WillScot said the sale proceeds will support growth investments in its North American Modular and Storage operating segments and other capital allocation priorities.
CEO Brad Soultz said the sale completes the company’s transition “into a pure play provider of modular space and storage solutions in North America” following the recently completed sale of its Tank & Pump segment to Kinderhook Industries, LLC an American private equity firm, completed in the third quarter of 2022.
WillScot has been growing its North American Modular and Storage business, largely through acquisitions, in recent times.
Acquisitions include Massachusetts Modulease Corporation in July, while the company completed over 20 acquisitions in 2022, including the purchase of Elite Modular Leasing and Sales in California mid-year.
Soultz confirmed WillScot will provide 2023 financial guidance excluding the UK Storage segment during the Q4 2022 earnings call in early 2023.
Completion of the transaction is subject to regulatory approval in the United Kingdom and is expected to close in the first quarter of 2023.