McGrath RentCorp completed its acquisition of Design Space Modular Buildings PNW LP for $260 million in cash, subject to certain adjustments. Design Space is a modular building and portable storage provider in the Western United States; its network of 15 branches and more than 100 employees serves diverse end markets, including construction, government, education and commercial.
“Our acquisition of Design Space is highly complementary to our modular building rental business,” said Joe Hanna, president and CEO of McGrath RentCorp. “With the acquisition now completed, we will turn our collective energy to completing a successful integration process. We look forward to building on Design Space’s success and achieving future growth together. We are excited to start working with our new team members.”
The transaction expands McGrath RentCorp’s Mobile Modular division across the Western U.S., adding 15 established branches across eight states, and creates operational cost savings by optimizing the joined firm’s combined fleet in California, the company said.
“We are extremely pleased to see Design Space combine with McGrath RentCorp., an organization that shares our same operating philosophy and customer centric approach,” said Design Space Co-owners Paul McShane, CEO, and Tony Esernia, founder. “Importantly, we are excited for our employees to have the opportunity to become part of this world-class organization.”
Kirkland & Ellis LLP acted as McGrath RentCorp’s legal advisor in the transaction. Oppenheimer & Co. Inc. served as exclusive financial advisor to Design Space and Jackson Walker LLP acted as Design Space’s legal advisor.
