U.S. News

Algeco Parent to Buy Williams Scotsman for $1.24 Billion


Mobile office and storage building company Williams Scotsman said on Thursday it had agreed to be bought by the parent of privately-held European competitor Algeco for $1.24 billion.

Williams Scotsman shareholders will receive $28.25 per share, which represents a 21 percent premium to its closing price on Wednesday, the company said.

Including debt, the company said the deal was worth $2.2 billion.

Gerry Holthaus, currently chairman and chief executive of Williams Scotsman, is expected to remain CEO and become chairman and CEO of Ristretto, Algeco's parent company.

The company, which is 27-percent-owned by private equity firm Cypress, may seek alternative offers from third parties through Aug. 17. The deal is expected to close in the fourth quarter.

Williams Scotsman, which operates primarily in North America and in Spain, provides modular space and storage units to the construction, education, commercial, healthcare and government markets. Algeco provides accommodation and storage units as well as portable toilets in Europe.

Williams Scotsman has 43.7 million shares outstanding according to its latest quarterly filing.

Its shares, which closed at $23.36 on Nasdaq on Wednesday, were trading at $27.52 in pre-market activity early on Thursday.