WillScot Mobile Mini (NASDAQ:WSC), renowned for its leading temporary space solutions, entered into a definitive agreement to purchase McGrath RentCorp (NASDAQ:MGRC), a distinguished business-to-business rental company located in Livermore, California, in a deal valued at $3.8 billion.
The payment structure for this acquisition is a mix of cash and stock. Shareholders of McGrath RentCorp will receive $123 per share, comprising 60% cash and 40% in WillScot Mobile Mini stock. This arrangement will result in McGrath shareholders owning about 12.6% of the combined entity.
WillScot Mobile Mini expects the transaction to significantly boost its growth trajectory. The company projects a combined pro forma revenue of $3.2 billion and an adjusted EBITDA of $1.4 billion for 2023. Additionally, it anticipates achieving a $700 million free cash flow run rate within twelve months following the deal’s completion. The completion of the deal is expected in the second quarter of 2024.