WillScot and Mobile Mini in $6.6bn merger

Allen & Overy and Davis Polk & Wardwell, respectively, led on the deal.

Posted Tuesday, March 3rd 2020
WillScot and Mobile Mini in $6.6bn merger

In one of the year’s largest logistics mergers so far, storage rental group WillScot is combining with Mobile Mini to create a $6.6 billion portable storage company.

 

The companies had a combined revenue of $1.7 billion last year, with WillScot pulling in $1 billion of that sum. The merger of equals will leave WillScot and Mobile Mini shareholders with 54% and 46% of the shares in the new company respectively.

 

Seen as a merger of complementary portfolios – as well as providing portable storage solutions, WillScot is best known as a modular space solutions specialist, while Mobile Mini is known for its portable storage solutions – the deal is anticipated to deliver $50 million in pre-tax cost synergies.

 

Mobile Mini itself merged with Mobile Storage Group in 2008 in a $702 million deal. Meanwhile, in 2016, Modular Space and WillScot combined their North American modular space operations; the value of the combined entity was not disclosed.

 

WillScot’s share price at the end of 2016 was $9.95, steadily rising from 2019 to $19.70 just before the latest merger was announced. It has now dipped to $17.13. Meanwhile, Mobile Mini’s share price has been rising since news of the merger.

 

Allen & Overy partners William Schwitter and Jeff Pellegrino led advice to WillScot; Mobile Mini instructed Davis Polk & Wardwell partner Phillip Mills.

 

Legal advisor to WillScot: Allen & Overy

Financial advisor to WillScot: Morgan Stanley

Legal advisor to Mobile Mini: Davis Polk & Wardwell

Financial advisor to Mobile Mini: Barclays Capital, Goldman Sachs