WSC - WillScot's Offer Undervalues McGrath

2024-01-31 06:43:24 ET

Summary

• WillScot's offer values McGrath as a standalone entity but undervalues its contribution to enlarged entity.
• Attractive business proposition for private markets, counterbid possible from financial sponsors or larger industry players.
• Economics support counter offer at higher premium to undisturbed price.

On 29 Jan 2024, McGrath RentCorp (MGRC) announced that its directors and the directors of WillScot Mobile Mini (WSC) agreed on a takeover of McGrath by WillScot, expected to close in Q2 2024.

McGrath Shareholders have been offered, for each MGRC share, either $123 in cash or 2.8211 WSC shares, which values McGrath at a c.$3.8bn EV....

For further details see: