Baltimore might soon be the center of the modular space world.
Following last week?s announcement that local firm Williams Scotsman Inc. agreed to be acquired by Paris-based Algeco for $2.2 billion, the companies appear poised to control the global space-rental marketplace.
The move should create an “international powerhouse” in the business, headquartered in Baltimore, said Gerry Holthaus, president and chief executive officer of Williams Scotsman.
Scotsman?s board of directors unanimously approved the merger agreement. Pending shareholder acquisition approval, Scotsman?s Baltimore headquarters will become the global headquarters for Algeco.
“It?s great for our people, and its great for the city and the state,” Holthaus said. “Our view is there will be no impact on our work force in North America or any part of Baltimore.”
Upon completion of the acquisition, the combined company will operate in 16 countries with more than 300,000 rental units and more than 4,600 employees.
“I think it?s a great opportunity for Williams Scotsman and its people, because obviously we are now partnering with the European model of business that is very much a replica of what we have in North America,” Holthaus said.
Williams Scotsman is a leading provider of mobile and modular space products for construction, education, commercial, health care and government markets. Its space and storage units are leased throughout North America and Spain.
Algeco, considered Europe?s leading space-rental company, serves similar customers in 13 countries, including Germany, Italy and the United Kingdom.
“This transaction will establish Algeco as the undisputed global leader in the space-rental marketplace,” Algeco CEO Bruno Roqueplo said in a statement. “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.”
The acquisition is expected to be finalized by the end of the year. Williams Scotsman could pay a termination fee of up to $40 million to Algeco if the proposed merger isn?t completed. Under the terms of the transaction, Scotsman may solicit alternative proposals from third parties through Aug. 17.
Holthaus said his next task was to develop a “global” company growth strategy. “The scope of our company has changed to a truly international operation,” he said.
