McGrath Acquires Colorado-Based Container Rental Company

Rhea-AI Summary

McGrath RentCorp (MGRC), a prominent rental company in North America, has acquired the assets of Brekke Storage, a regional provider in Colorado. The deal, financed through McGrath's revolving credit facility, enhances its portable storage operations by adding approximately 2,700 assets and a new branch location. CEO Joe Hanna emphasized that this acquisition aligns with McGrath's capital deployment strategy, allowing for increased regional market share and a high-quality fleet in Colorado. McGrath's strong financial history includes over 30 consecutive years of dividend increases, highlighting its profitable growth trajectory.

Positive

• Acquisition of Brekke Storage adds approximately 2,700 assets.
• New branch location expands McGrath's reach in the Colorado market.
• Enhances McGrath's portable storage rental business.

Negative

• Transaction funded by borrowings, possibly increasing financial leverage.

LIVERMORE, Calif.--(BUSINESS WIRE)-- McGrath RentCorp (“McGrath” or the “Company”) (Nasdaq: MGRC), a leading business-to-business rental company in North America, today announced it has acquired the assets of Brekke Storage, a regional provider of portable storage solutions in the Colorado market. The transaction was funded with borrowings from McGrath’s revolving credit facility. The acquisition adds approximately 2,700 assets and a new branch location for McGrath’s portable storage operations.

“The acquisition of Brekke Storage is highly complementary to our portable storage rental business,” said Joe Hanna, President and CEO of McGrath. “Consistent with our ongoing capital deployment strategy, this opportunity provides us with a new regional operation and a high-quality fleet to serve the Colorado market. We welcome the Brekke team and look forward to growing our expanded regional market share with a new set of customers.”

ABOUT MCGRATH:

McGrath RentCorp (Nasdaq: MGRC) is a leading business-to-business rental company in North America with a strong record of profitable business growth. Founded in 1979, McGrath’s operations are centered on modular solutions through its Mobile Modular and Mobile Modular Portable Storage businesses. In addition, its TRS-RenTelco business offers electronic test equipment rental solutions. The Company’s rental product offerings and services are part of the circular supply economy, helping customers work more efficiently, and sustainably manage their environmental footprint. With over 40 years of experience, McGrath’s success is driven by a focus on exceptional customer experiences. This focus has underpinned the Company’s long-term financial success and supported over 30 consecutive years of annual dividend increases to shareholders, a rare distinction among publicly listed companies.

Headquartered in Livermore, California. Additional information about McGrath and its businesses is available at mgrc.com and investors.mgrc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230301006082/en/

Keith E. Pratt

EVP & Chief Financial Officer

925-606-9200

Source: McGrath RentCorp

FAQ

What did McGrath RentCorp acquire?

McGrath RentCorp acquired the assets of Brekke Storage, a regional provider of portable storage solutions in Colorado.

How many assets were added by the acquisition?

The acquisition of Brekke Storage adds approximately 2,700 assets to McGrath's operations.

How was the acquisition funded?

The acquisition was funded through borrowings from McGrath's revolving credit facility.

What is the expected impact of the acquisition on McGrath's market share?

The acquisition is expected to increase McGrath's regional market share in Colorado.

How does this acquisition fit into McGrath's business strategy?

The acquisition aligns with McGrath's ongoing capital deployment strategy, enhancing their portable storage rental business.