Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.

Publish Date : 14-Feb-2013

Algeco Scotsman (“AS” or “Algeco”), a leading global business services company focused on modular space and secure storage solutions, today announced it has signed an agreement to acquire Target Logistics Management LLC (“Target Logistics” or “Target”), a leading provider of full-service remote workforce accommodation solutions in the United States. The transaction is subject to certain customary closing conditions and is expected to be completed by the end of February 2013.

The transaction further solidifies Algeco Scotsman’s position as the leading modular space business services provider and specifically facilitates Algeco’s continued strategic expansion in the highly attractive global remote accommodation segment. The combination establishes Algeco as a leading global provider of managed and leased remote accommodations with a portfolio in excess of 11,000 beds primarily in the high growth US, Canadian, Australian and Latin American energy, mining and resources and infrastructure related-markets. Following this acquisition, Target will become a truly global provider of full service, turnkey remote accommodation solutions. Brian Lash, Target Founder and Chief Executive Officer, will continue to lead Target and will be tasked to expand the business utilizing Algeco’s global footprint.

“This transaction represents a highly strategic combination for both Algeco Scotsman and Target Logistics,” stated Algeco Scotsman’s Chief Executive Officer and President Jean-Marc Germain, “The merger of Target Logistics’ world class turnkey remote accommodation offering with AS’ global footprint and expertise greatly enhances growth opportunities for the organization and I am delighted that Brian Lash and his executive team have agreed to join us at Algeco.”

The total consideration for the transaction is up to approximately $625 million based on Target’s financial projections. Of the total consideration, $275 million is payable at closing and approximately $350 million is deferred and linked to Target’s expected strong performance over multiple years. The total closing consideration of $275 million is comprised of approximately $86 million in cash, $86 million of Algeco stock and $103 million of assumed indebtedness and working capital. The cash consideration will be funded by existing facilities available to Algeco and the deferred consideration is payable principally in Algeco stock.

The total potential transaction consideration represents approximately 11.0x trailing unaudited EBITDA for the fiscal year ended December 31, 2012 and an implied forward EBITDA multiple of less than 9.0x. The valuation of the stock consideration for the transaction implies an Algeco enterprise value of approximately $6.0 billion.

Go to previous page