Algeco Enters Into Definitive Agreement to Sell Target Lodging
LONDON, Nov. 13, 2018 (GLOBE NEWSWIRE) — Algeco Investments B.V. (“Algeco Investments”, and together with its subsidiaries, “Algeco”), the leading global business services provider of modular space, secure portable storage solutions and remote workforce accommodations, today announced that certain of its subsidiaries have entered into a definitive agreement (the “Stock Purchase Agreement”) with Platinum Eagle Acquisition Corp., a publicly traded special purpose acquisition company (“PEAC”), to sell the Algeco Group’s North American remote accommodations business, Target Lodging, to Target Lodging Holdings Corp. (“Holdco”), a newly-formed subsidiary of PEAC (the “Transaction”). Simultaneously to the Target Lodging sale, TDR Capital LLP will be selling its Signor Holdings business to PEAC as well.
Andrew Tyler, CEO Algeco: “We are very excited about the sale of Target Lodging to Platinum Eagle Acquisition Corp. This sale captures significant value for Algeco and allows Algeco to continue a theme of geographic simplification that we began in late 2017 with the sale of Williams Scotsman, allowing us to focus on our core businesses.”
Pursuant to the Stock Purchase Agreement, the Algeco Group will sell Target Lodgings for an aggregate purchase price of $820 million, of which $562 million shall be paid in cash (the “Cash Consideration”) to the Algeco Group and the remaining $258 million shall be paid in the form of a shares of common stock in the new PEAC.
Furthermore, on November 6, 2018, and in connection with the Transaction, Algeco Investments and the other parties thereto entered into an amendment to the ABL Credit Agreement to (i) permit the Transaction, (ii) terminate the commitments under the U.S. revolving facility provided pursuant to the ABL Credit Agreement, (iii) reduce the revolving commitments under the Australia/New Zealand and UK revolving facility provided pursuant to the ABL Credit Agreement and (vii) effect certain other amendments, releases and consents to the ABL Credit Agreement (the “ABL Credit Agreement Amendment”). The closing of the ABL Credit Agreement Amendment is conditional upon, and will occur simultaneously with, the closing of the Transaction. We currently anticipate that approximately $90 million of the Cash Consideration will be used at closing to repay certain amounts outstanding under the facilities provided pursuant to the ABL Credit Agreement, and we currently anticipate that we will use a further portion of the cash consideration to repay certain factoring obligations. The remaining cash will remain on balance sheet to be applied by Algeco to fund strategic opportunities, debt repayment or other purposes determined by our board of directors.
Algeco is the leading global business services provider focused on modular space, secure portable storage solutions, and remote workforce accommodation management. Headquartered in London, Algeco has operations in 24 countries with approximately 241,000 modular space and portable storage units and 12,800 remote accommodations rooms. The company operates as Target Lodging in North America, Algeco in Europe, Elliott in the United Kingdom, Ausco in Australia, Portacom in New Zealand, and Algeco Chengdong in China.
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