McGrath RentCorp
stock was climbing Monday as mobile storage company
WillScot Mobile Mini Holdings
agreed to acquire the business rental company in a $3.8 billion deal.
The 60% stock and 40% cash transaction is expected to close in the second quarter, the companies said in press release, subject to the approval of
McGrath
shareholders. When the deal is closed, McGrath stock holders will receive for each of their shares either $123 in cash or 2.8211 shares of WillScot Mobile Mini common stock.
“This combination provides McGrath customers and employees a platform for continued growth and success, while providing McGrath shareholders with immediate cash value as well as participation in the upside potential of the combined company,” McGrath Chief Executive Joseph Hanna said.
WillScot Mobile expects the combined company will generate around $700 million in annual free cash flow by the end of the first full year following closing.
The deal represents a 10.1% premium to McGrath’s closing price on Friday. Shares of McGrath were rising 10% Monday to $123.20, which would be a new closing high for the stock and its largest percentage increase since October 2022, according to Dow Jones Market Data. WillScot Mobile shares were flat at $45.10.
Write to Angela Palumbo at [email protected]
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