---
schema_version: "secwatch.filing_event.v1"
accession: "0000950170-23-001589"
form_type: "8-K"
ticker: "MGRC"
cik: "0000752714"
company_name: "MCGRATH RENTCORP"
filed_at: "2023-02-01T23:59:59+00:00"
generated_at: "2026-06-20T04:23:01.693440+00:00"
event_type: "m_and_a"
sentiment: "positive"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# McGrath buys Vesta Modular for $400M, sells Adler Tank for $265M to focus on modular

## Summary
- 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.

## SEC filing metadata
- accession: 0000950170-23-001589
- form_type: 8-K
- ticker: MGRC
- cik: 0000752714
- company_name: MCGRATH RENTCORP
- filed_at: 2023-02-01T23:59:59+00:00
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 1.01, 2.01, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/752714/000095017023001589/0000950170-23-001589-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/752714/000095017023001589/mgrc-20230201.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0000950170-23-001589
- JSON: https://secwatch.observer/filing/0000950170-23-001589.json
- Plain text: https://secwatch.observer/filing/0000950170-23-001589.txt

## Key facts
- M&A Transactions
  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
  source text: 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.
  evidence_url: https://www.sec.gov/Archives/edgar/data/752714/000095017023001589/0000950170-23-001589-index.htm
- M&A Transactions
  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
  source text: 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.
  evidence_url: https://www.sec.gov/Archives/edgar/data/752714/000095017023001589/0000950170-23-001589-index.htm
- Material Agreements
  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
  source text: 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.
  evidence_url: https://www.sec.gov/Archives/edgar/data/752714/000095017023001589/0000950170-23-001589-index.htm
- Material Agreements
  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
  source text: 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.
  evidence_url: https://www.sec.gov/Archives/edgar/data/752714/000095017023001589/0000950170-23-001589-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.