Storage container and portable accommodation specialist Mobile Mini has been sold in a £335m deal to a modular buildings specialist.
It follows a decision by Mobile Mini UK's US parent WillScot Mobile Mini Holdings to concentrate its efforts on its native North American market. Buyer Modulaire Group, which provides a range of services and infrastructure, says the move will strengthen its UK presence, bringing on board the Stockton-based firm's 16 branches and 375 staff.
The acquisition is subject to UK regulatory approval and the proceeds will fund US group's operations. The deal is expected to complete in early 2023.
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Brad Soultz, chief executive officer of WillScot Mobile Mini Holdings, said: "Thank you to the Mobile Mini UK team for their dedication to WillScot Mobile Mini Holdings. This transaction and the previously completed divestiture of the Tank & Pump segment will complete the transition of our portfolio into a pure play provider of modular space and storage solutions in North America, where our industry-leading platform enjoys unparalleled scale benefits and allows us to deliver greater value to our customers and shareholders."
In its most recent accounts to the end of 2021, high growth Mobile Mini UK reported turnover had grown from £63.2m to £79.5m and operating profits had increased from £15.1m to £27.7m. Writing in a report with those accounts, the firm's finance director Steve Dickinson said the business had performed well despite uncertainty in the UK economy posed by Brexit and the pandemic.
Mr Dickinson said: "Despite some uncertainties created by Brexit and the continuing Covid-19 pandemic the company continued to grow market share, rental rates, and managed services. The operating leverage inherent in our business model has meant that we were able to maintain a strong operating margin.
"The company continues to invest capital into infrastructure, such as transportation equipment and yard and workshop facilities, to enable us to better serve our customers. In addition, the continued high utilisation of many of our rental products has required continued capital expenditure on our lease fleet, all of which has been funded through operating cash flows."
Modulaire, which operates as Algeco in the UK and Europe, has operations in 23 countries and manages more than 290,000 modular space and portable storage units, along with 4,400 remote accommodation units. The acquisition adds Mobile Mini UK's 42,000 units to its stable.
Cleary Gottlieb Steen & Hamilton LLP acted as legal adviser to WillScot Mobile Mini Holdings.
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