Algeco announces completion of Target Lodging disposal
LONDON (15 March 2019) – Algeco Investments B.V. (together with its subsidiaries, “Algeco”), the leading global business services provider of modular space, secure portable storage solutions and remote workforce accommodations, today announced the completion of the disposal of its North American remote accommodations business, Target Lodging, to Target Lodging Holdings Corp., a newly-formed subsidiary of Platinum Eagle Acquisition Corp (“Platinum Eagle”). Upon completion Platinum Eagle changed its name to Target Hospitality Corp. and will continue trading on the Nasdaq Stock Market. The $820 million of proceeds received by Algeco in relation to the disposal comprised $563 million of cash (“Cash Consideration”) and $257 million of shares of common stock in Target Hospitality Corp. Algeco has used $92 million of the Cash Consideration to repay certain amounts outstanding under the facilities provided pursuant to the ABL Credit Agreement and will use $30 million to repay certain factoring obligations. Upon today’s completion of the Target Lodging disposal, the previously announced amendment of Algeco’s ABL Credit Agreement has become effective.
Andrew Tyler, Chief Executive of Algeco: “We are delighted to have completed the sale of Target Lodging. This disposal delivers significant value for Algeco and materially simplifies the Group enabling us to focus fully on our core operations in Europe and Asia Pacific. The cash proceeds provide us with enhanced financial flexibility as we continue to execute against our strategy.”
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This press release includes forward-looking statements within the meaning of the securities laws of certain applicable jurisdictions, which reflect Modulaire Group's expectations regarding its future operational and financial performance. By their nature, the forward-looking events described in this press release may not be accurate or occur at all. Accordingly, you should not place undue reliance on these forward-looking statements, which speak only as of the date on which the statements were made. Although any forward-looking statements contained in this press release reflect management's current beliefs based upon information currently available to management and upon assumptions which management believes to be reasonable, actual results may differ materially from those stated in or implied by these forward-looking statements. A number of factors could cause actual results, performance or achievements to differ materially from the results expressed or implied in any forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on any forward-looking statements. Except as required by law, we undertake no obligation, and specifically decline any obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Modulaire Group
Modulaire Group is the world’s leading business services company specialising in modular space. We create smart spaces for people to live, work and learn. Our business is designed to help customers find the right space solution, no matter what their requirements. Modulaire Group has operations in 24 countries with approximately 250,000 modular space and portable storage units and 3,400 remote accommodations rooms. The company operates as Algeco in Europe, Elliott in the United Kingdom, BUKO Huisvesting, BUKO Bouw & Winkels and BUKO Bouwsystemen in The Netherlands, Malthus Uniteam and Wexus in Norway, Ausco in Australia, Portacom in New Zealand, and Algeco Chengdong in China.
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Investor relations: Phil Vellacott