xml:space="preserve">
xml:space="preserve">
Advertisement

Baltimore-based WillScot Corp. to merge with portable storage business creating company valued at $6.6 billion

Baltimore-based modular space rental company WillScot Corporation has entered a merger agreement with the Arizona-based portable storage company Mobile Mini, Inc., the companies announced Monday.

The combined company has an estimated value of approximately $6.6 billion. The transaction is expected to close in the third quarter of 2020, at which time WillScot and Mobile Mini stockholders will own 54% and 46% of the combined company, respectively, according to a news release.

Advertisement

WillScot supplies portable classroom and office space. Mobile Mini also supplies portable office space as well as storage containers, tanks, pumps and filters. The merger is expected to save the companies a combined $50 million, the release states.

WillScot president Brad Soultz said the merger represents a milestone for both companies.

Advertisement

“The combination of our two great companies creates a leading provider of modular space and portable storage solutions, with a broadened footprint and expanded fleet ideally positioned to benefit from the cross-selling of WillScot’s Ready to Work solutions and Mobile Mini’s managed services offerings," Soultz said.

The combined company will benefit from diversified and predictable lease revenue streams and a “strong balance sheet,” he said, adding the company expects further growth and greater returns for stockholders.

As part of the transaction, TDR Capital will exchange all of its shares of Williams Scotsman Holdings Corp. into approximately 10.6 million shares of WillScot Class A common stock pursuant to the Exchange Agreement dated November 29, 2017 among WillScot, Williams Scotsman Holdings Corp. and affiliates of TDR Capital, and all shares of WillScot’s Class B Common Stock will be canceled for no consideration. Upon the effective time of the merger, the combined company will have a single class of common stock.

Following the close of the transaction, Soultz will serve as chief executive officer of the combined company and Mobile Mini’s president Kelly Williams will serve as president and chief operating officer. WillScot’s chief financial officer Tim Boswell and Mobile Mini’s general counsel Chris Miner will remain in their positions at the combined company, the release states.

The combined company’s board of directors will consist of 11 directors, six from the WillScot board and five from the Mobile Mini board, according to the release.

The private equity firm TDR Capital has entered into a voting agreement in support of the transaction. TDR Capital will be prohibited from selling more than 50% of its shares of the combined company for six months following closing.

Recommended on Baltimore Sun

Advertisement
Advertisement
Advertisement