Williams Scotsman, a Baltimore-based company that rents office trailers, storage containers and other modular spaces, announced Friday that it has agreed to acquire Pennsylvania-based competitor ModSpace for $1.1 billion.
The deal, expected to close in the third quarter of 2018, would more than double Williams Scotsman’s revenue to over $1 billion a year and expand its geographic reach.
The acquisition would allow the Williams Scotsman “to create an even stronger and more agile partner for our customers and vendors,” Brad Soultz, the company’s president and CEO, said in a statement.
The deal marks Williams Scotsman’s third acquisition since December. In December, the company acquired a local competitor, Acton Mobile, for $235 million, and in January, acquired Tyson Onsite for an undisclosed amount.
The company has been in growth mode since last year when two Hollywood executives used a public shell company to acquire Williams Scotsman from its European parent for $1.1 billion. Founded in Baltimore in 1955, Williams Scotsman went public in 2005, before being acquired by Paris-based Algeco two years later.
It has more than 1,600 employees across more than 100 North American offices, including its headquarters at Bond Street Wharf in Fells Point.
The company said Friday that it would have over 160,000 modular space and portable storage units following the acquisition and extend its reach to a total of 120 locations.
ModSpace sells a variety of modular structures similar to Williams Scotsman’s, including mobile offices, classrooms and portable bathroom trailers.
Modular Space Holdings Inc., the Berwyn, Pa.-based parent of ModSpace, generated $453 million in revenue for the 12 months ending March 31.
Williams Scotsman reported 2017 revenue of $446 million, and revenue in the first quarter was up 35 percent to nearly $135 million.
ModSpace CEO Charles Paquin said in a statement that his company is “excited for the opportunities the merger will create for our customers and employees” and that the combination of the two companies “will result in a world class business capable of delivering an unparalleled customer experience.”
Williams Scotsman said it expects to generate about $60 million in “cost synergies” as a result of the acquisition.
The company plans to pay for ModSpace with just over $1 billion in cash, 6.5 million shares of Williams Scotsman stock and warrants to purchase 10 million shares of its stock for $15.50 each.
Shares of Williams Scotsman spiked 25 percent to close at $15.20 each in Friday trading.
Both companies will continue to operate independently until the transaction closes.