McGrath Acquires South Carolina-Based Container Rental Company

Rhea-AI Summary

McGrath RentCorp (Nasdaq: MGRC) has acquired the assets of Dixie Temporary Storage, enhancing its portable storage operations in South Carolina. This strategic acquisition adds approximately 800 assets and establishes a new regional branch, aligning with McGrath's goals for capital deployment and geographic expansion. The transaction was financed through McGrath's revolving credit facility. President and CEO Joe Hanna emphasized the complementary nature of this acquisition to McGrath’s existing operations, aiming to boost market share in South Carolina.

Positive

• Acquisition of Dixie Temporary Storage complements operations and expands market presence.
• Addition of approximately 800 assets and a new branch enhances operational capacity.
• Strategically aligns with ongoing capital deployment and geographic expansion goals.

Negative

• None.

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 Dixie Temporary Storage, a regional provider of portable storage solutions in the South Carolina market. The transaction was funded with borrowings from McGrath’s revolving credit facility. The acquisition adds approximately 800 assets and a new branch location for McGrath’s portable storage operations.

“Our acquisition of Dixie Temporary Storage is highly complementary to our portable storage rental business,” said Joe Hanna, President and CEO of McGrath. “Consistent with our ongoing capital deployment and geographic expansion strategies, this opportunity provides us with a new regional operation and a high-quality fleet to serve the South Carolina market. We welcome the Dixie team and look forward to growing our expanding 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/20230331005322/en/

Keith E. Pratt

EVP & Chief Financial Officer

925-606-9200

Source: McGrath RentCorp

FAQ

What acquisition did McGrath RentCorp announce?

McGrath RentCorp announced the acquisition of Dixie Temporary Storage, a provider of portable storage solutions in South Carolina.

How many assets were acquired with Dixie Temporary Storage?

The acquisition added approximately 800 assets to McGrath RentCorp's portfolio.

How was the acquisition of Dixie Temporary Storage financed?

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

What is the expected impact of this acquisition on McGrath RentCorp?

This acquisition is expected to enhance McGrath's regional operations and increase market share in South Carolina.