Consolidation in the modular housing industry doesn't always mean one company buying its competitor. Sometimes it's one company buying another that is one step away in the vertical integration process making the first company stronger and better able to meet their customer's needs.
McGrath RentCorp announced that it has signed a definitive agreement under which it will acquire Design Space Modular Buildings for a cash purchase price of $260 million, subject to certain adjustments.
Design Space is a leading modular building and portable storage provider in the Western U.S. Its network of 15 branches and over 100 employees serve diverse end markets, including construction, government, education and commercial.
“The acquisition of Design Space is highly complementary to our modular building rental business,” said Joe Hanna President and CEO of McGrath RentCorp. “This strategic initiative accelerates our expansion into attractive new geographies. With our available capital and combined sales and operational resources, we look forward to building on Design Space’s success and achieving future growth together. Design Space has a strong, dedicated and experienced team. We are excited about welcoming our new team members as an important part of our future.”
CLICK HERE to read the entire Business Wire article
Gary Fleisher is the Managing Director and contributor to the Modcoach Network and its affiliated blogs. Email at email@example.com.
Sign Up to receive the Modcoach News newsletter twice a week