secwatch.observer — SEC 8-K summary
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Issuer:     MCGRATH RENTCORP (MGRC)
CIK:        0000752714
Form:       8-K
Filed at:   2023-02-01T23:59:59+00:00
Accession:  0000950170-23-001589
Event type: m_and_a
Sentiment:  positive
Materiality: 0.75
Item codes: 1.01, 2.01, 7.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/752714/000095017023001589/0000950170-23-001589-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/752714/000095017023001589/mgrc-20230201.htm
  HTML page:      https://secwatch.observer/filing/0000950170-23-001589

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer