Paris, 19 July 2007: Algeco, Europe’s leading space rental company, today announces the acquisition of Williams Scotsman, the leading US modular space rental group, for an all-cash consideration of $2.2 billion, including the refinancing of outstanding debt. The combined group will become the world’s leading supplier of modular space solutions and rental services
Under the terms of the transaction, Williams Scotsman’s shareholders will receive $28.25 cash per share, which represents a premium of approximately 21% to Williams Scotsman’s average closing share price on Nasdaq on 18 July 2007.
It is expected that Gerry Holthaus, currently Chairman and Chief Executive Officer of Williams Scotsman, will become the Chairman and Chief Executive Officer of Ristretto, the holding company of Algeco, upon completion of the acquisition. He will be responsible for all operations of the combined company. Bruno Roqueplo will continue as CEO of Algeco, working with Gerry Holthaus to grow and develop the business further.
The transaction will establish Algeco as the leading global provider of the modular space solutions and a top-five global player in the rental services market through the combination of Williams Scotsman’s North American operations and Algeco’s businesses in Europe. Upon completion of the acquisition, the combined company will operate in 16 countries, with almost 300,000 rental units and more than 4,600 employees.
It is expected that Williams Scotsman will continue to operate under the Williams Scotsman name in North America, and that its business there will remain unaffected by the combination. Williams Scotsman’s North American management team will remain in place. It is also expected that Williams Scotsman’s headquarters located in Baltimore, MD, will become the global headquarters for Algeco with shared services located there and in Algeco’s existing shared services centre in Macon, France.
Commenting on the transaction, Bruno Roqueplo, said: “This transaction will establish Algeco as the undisputed global leader in the space rental marketplace. The combined group will open up great opportunities for the staff of both companies, and give us the significant scale and resources needed to underpin our continued strong growth and development for the future. I look forward to working with Gerry Holthaus to deliver the full potential of the combined business.”
Bruno Roqueplo added, “the combination of these two high performing companies provides huge scale to support the entry into new geographic markets as part of the overall growth strategy. Pooling the product and market expertise of the two businesses will also give a major boost to innovation across the combined group and position the group at the forefront of the industry in product design, not just scale”.
Gerry Holthaus added, “International customers of both companies will now be able to take advantage of our significantly enhanced global presence. Combining the heritage of these two leading companies is very exciting. Both have been leaders in their markets for many years and we now have the opportunity to share best practice between North America and Europe. I look forward to working with the management teams on both sides of the Atlantic to further grow and develop the business.”
The transaction is expected to close in the fourth quarter of 2007, subject to approval by Williams Scotsman’s shareholders, customary closing conditions and regulatory approvals.
Morgan Stanley and Citigroup acted as financial advisors to Algeco. Paul, Hastings, Janofsky & Walker LLP is serving as transaction counsel to Algeco. Debt fully underwritten by Deutsche Bank and Royal Bank of Scotland.
CIBC World Markets and Bank of America Securities acted as financial advisors to Williams Scotsman, and each provided Williams Scotsman with a fairness opinion. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as transaction counsel to Williams Scotsman.
Enquiries
France – Euro RSCG (PR for Algeco) +33 1 5847 9539
Benjamin Perret
UK - Maitland (PR for Algeco) +44 20 7379 5151
Neil Bennett
Anthony Silverman
About Algeco
Algeco is the clear leader of the European space rental industry. The business operates the largest fleet of rental accommodation and storage facilities in the world with a total of approximately 175,000 units including portable restrooms. Accommodation, storage and welfare units are available to meet a comprehensive range of requirements and can be tailored to suit customer needs. The group serves customers in; Construction and Infrastructure, Industry, Services and Administration. Algeco operates in 13 countries; France, UK, Spain, Germany, Portugal, Italy, Belgium, Poland, Czech, Romania, Finland, Slovakia and Luxembourg. For information visit the company’s website at www.algeco.co.uk.
About Williams Scotsman
Williams Scotsman, is a leading provider of mobile and modular space solutions for multiple industry sectors, including the Construction, Education, Commercial, Healthcare and Government markets. The company serves over 30,000 customers, operating a fleet of over 118,000 modular space and storage units that are leased through a network of over 100 locations throughout North America and Spain. Williams Scotsman provides delivery, installation, and other services, and sells new and used mobile office products. Williams Scotsman also manages large modular building projects from concept to completion. Williams Scotsman is a publicly traded company (NASDAQ: WLSC) headquartered in Baltimore, Maryland with operations in the United States, Canada, Mexico, and Spain. For additional information, visit the company's web site at www.willscot.com.
