8-K
filed February 1, 2023, 6:59 PM ET
ticker MGRC
CIK 0000752714
M&A
confidence high
sentiment positive
materiality 0.75
MCGRATH RENTCORP (MGRC): M&A transaction — McGrath buys Vesta Modular for $400M, sells Adler Tank for $265M to focus on modular
MCGRATH RENTCORP
- Sold Adler Tank to Ironclad for $265M (7.1x adj. EBITDA); acquired Vesta Modular for $400M (7.7x FY2022 EBITDA net of synergies).
- Vesta: ~6,000 units, $129M revenue, $40M TTM EBITDA; expects $8M annual run-rate synergies by 2024.
- Net cash outflow ~$165M incl. $30M reimbursable capex; leverage 2.1x adj. EBITDA; modular revenue mix to rise to 80%.
- Both transactions closed Feb 1, 2023, financed under McGrath's existing revolving credit facility.
Key facts
Extracted from this filing and checked against the source text.
M&A Transactions
SEC 8-K Item 2.01/5.01
confidence 0.9
MCGRATH RENTCORP completed an acquisition involving Vesta Housing Solutions Investor, LLC for $400 million (closed 2023-02-01).
- Action
- acquisition
- Counterparty
- Vesta Housing Solutions Investor, LLC
- Consideration
- $400 million
- Closing
- 2023-02-01
Exact text from the filing
On February 1, 2023, the Company entered into a stock purchase agreement (the “ Vesta SPA ”) with Vesta Housing Solutions Investor, LLC, a Delaware limited liability company (“ Vesta Seller ”), and Vesta Housing Solutions Holdings, Inc., a Delaware corporation (“ Vesta ”), providing for the purchase by the Company of all of the fully diluted issued and outstanding equity interests of Vesta for a purchase price of $400 million.
View on SEC.gov
M&A Transactions
SEC 8-K Item 2.01/5.01
confidence 0.9
MCGRATH RENTCORP completed a disposition involving Ironclad Environmental Solutions, Inc. for $265 million (closed 2023-02-01).
- Action
- disposition
- Counterparty
- Ironclad Environmental Solutions, Inc.
- Consideration
- $265 million
- Closing
- 2023-02-01
Exact text from the filing
On February 1, 2023, McGrath RentCorp (the “ Company ”) entered into an equity purchase agreement (the “ Adler EPA ”) with Adler Tank Rentals, LLC, a Delaware limited liability company (“ Adler ”), and Ironclad Environmental Solutions, Inc., a Delaware corporation (“ Ironclad ”) providing for the sale of all of the fully diluted issued and outstanding equity interests of Adler by the Company for a sale price of $265 million.
View on SEC.gov
Material Agreements
SEC 8-K Item 1.01/1.02
confidence 0.9
MCGRATH RENTCORP entered into Adler Tank Rentals Equity Purchase Agreement with Adler Tank Rentals, LLC and Ironclad Environmental Solutions, Inc. valued at $265,000,000 (effective 2023-02-01).
- Action
- entry
- Agreement
- equity purchase
- Counterparty
- Adler Tank Rentals, LLC and Ironclad Environmental Solutions, Inc.
- Value
- $265,000,000
- Effective
- 2023-02-01
Exact text from the filing
On February 1, 2023, McGrath RentCorp (the “ Company ”) entered into an equity purchase agreement (the “ Adler EPA ”) with Adler Tank Rentals, LLC, a Delaware limited liability company (“ Adler ”), and Ironclad Environmental Solutions, Inc., a Delaware corporation (“ Ironclad ”) providing for the sale of all of the fully diluted issued and outstanding equity interests of Adler by the Company for a sale price of $265 million.
View on SEC.gov
Material Agreements
SEC 8-K Item 1.01/1.02
confidence 0.9
MCGRATH RENTCORP entered into Vesta Housing Solutions Stock Purchase Agreement with Vesta Housing Solutions Investor, LLC and Vesta Housing Solutions Holdings, Inc. valued at $400,000,000 (effective 2023-02-01).
- Action
- entry
- Agreement
- equity purchase
- Counterparty
- Vesta Housing Solutions Investor, LLC and Vesta Housing Solutions Holdings, Inc.
- Value
- $400,000,000
- Effective
- 2023-02-01
Exact text from the filing
On February 1, 2023, the Company entered into a stock purchase agreement (the “ Vesta SPA ”) with Vesta Housing Solutions Investor, LLC, a Delaware limited liability company (“ Vesta Seller ”), and Vesta Housing Solutions Holdings, Inc., a Delaware corporation (“ Vesta ”), providing for the purchase by the Company of all of the fully diluted issued and outstanding equity interests of Vesta for a purchase price of $400 million.
View on SEC.gov
This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice.
See methodology for how this pipeline works.