Target Hospitality Announces Acquisition of Strategic Humanitarian Assets

Rhea-AI Summary

Target Hospitality (NASDAQ: TH) announced the acquisition of strategic assets aimed at enhancing its capacity to support the U.S. government's humanitarian aid efforts. This move aligns with the government's urgent need for increased housing solutions due to anticipated spikes in individuals crossing the U.S. Southwest border post-Title 42 expiration in May 2023. The acquired assets, already utilized for various government humanitarian solutions, will complement Target's existing services, enabling quicker responses to demand. This acquisition is part of Target's strategy to expand its reach within government markets and strengthen its capabilities in addressing growing humanitarian needs.

Positive

• Acquisition of strategic assets will enhance capacity for humanitarian housing solutions.
• Alignment with U.S. government's urgent need for increased housing capacity.
• Strong positioning to respond quickly to anticipated increases in demand post-Title 42.

Negative

• None.

THE WOODLANDS, Texas, April 17, 2023 /PRNewswire/ -- Target Hospitality Corp. ("Target Hospitality," "Target" or the "Company") (Nasdaq: TH), one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services, today announced it has acquired strategic assets focused on increasing portfolio capacity in support of the United States government's critical humanitarian aid mission.    

These geographically significant assets have been utilized by the United States government to support a variety of humanitarian housing solutions across government agencies. Target believes the strategic location of these assets, along with its comprehensive suite of hospitality solutions, positions the Company to expand its critical service offerings supporting the U.S. government's evolving and dynamic humanitarian mission. 

Including Target's existing humanitarian community, the addition of these assets will allow the Company to react quickly and support the government's stated and urgent need for additional housing capacity.  This urgent and compelling need is a result of the anticipated substantial increase of individuals crossing the U.S. Southwest boarder following the cessation of Title 42, anticipated in May of 2023, resulting in meaningful excess demand for existing government humanitarian solutions. 

This transaction is a continuation of the Company's strategy to pursue high return capital allocation initiatives, including expanding reach across government agencies, while strategically aligning network capabilities with growing government end-market demand. 

About Target Hospitality

Target Hospitality is one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services in the United States. Target builds, owns and operates a customized and growing network of communities for a range of end users through a full suite of value-added solutions including premium food service management, concierge, laundry, logistics, security and recreational facilities services.

Cautionary Statement Regarding Forward Looking Statements

Certain statements made in this press release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: operational, economic, including inflation, political and regulatory risks; our ability to effectively compete in the specialty rental accommodations and hospitality services industry; effective management of our communities; natural disasters and other business distributions including outbreaks of epidemic or pandemic disease; changes in demand within a number of key industry end-markets and geographic regions; failure to retain key personnel; increases in raw material and labor costs; our future operating results fluctuating, failing to match performance or to meet expectations; our exposure to various possible claims and the potential inadequacy of our insurance; our obligations under various laws and regulations; the effect of litigation, judgments, orders, regulatory or customer bankruptcy proceedings on our business; our ability to successfully acquire and integrate new operations; global or local economic and political movements, including any changes in policy under the Biden administration; federal government budgeting and appropriations.  We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 

Investor Contact
Mark Schuck
(832) 702 – 8009
ir@targethospitality.com

View original content:https://www.prnewswire.com/news-releases/target-hospitality-announces-acquisition-of-strategic-humanitarian-assets-301797949.html

SOURCE Target Hospitality

FAQ

What assets did Target Hospitality acquire?

Target Hospitality acquired strategic assets focused on increasing portfolio capacity in support of U.S. humanitarian aid.

How will the acquisition impact Target Hospitality's operations?

The acquisition is expected to enhance Target's ability to quickly respond to government requests for additional housing capacity.

Why is the acquisition significant for Target Hospitality?

It aligns with the urgent need for housing solutions due to anticipated increases in individuals crossing the U.S. border after Title 42 ends.

What is the expected impact of Title 42's cessation on Target Hospitality?

The cessation is anticipated to lead to a significant increase in demand for humanitarian housing services.