Five times the size of the next competitor in a $10B+ market, products with 25%+ IRR over a 30yr asset life span, counter-cyclical capex and working capital, management proactive on value creation.
"However, WSC deals provided more value. Synergies numbers of Vesta ($8M, no record for Design Space) aren’t nearly as impressive as ModSpace to WSC at $60M. Modspace, at $1.1B, is a much bigger player in the industry and can add substantial future growth to WSC in the shape of VAPS - this is one of the core pillars of growth for WSC. As a result, WSC has paid a lower price at just 6.6x EBITDA post synergy - so WSC does, in fact, have stronger bargaining power than McGrath."
1.1bn less 100m of working capital capture less 100m released real estate = 900m
900/160 = 5.6x. so possibly even better than you suggested above... bargain, really!
Mark Leonard, CEO of CSU - constellation software would be proud I think! Almost half the price paid for M&A compared to the 2nd place rival, and incumbents from adjacent industries.
Hi Max, i have replied in detailed in the SWI's chat. Overall, I acknowledge their point and given my explanations on the possible impact to WSC's business.
"However, WSC deals provided more value. Synergies numbers of Vesta ($8M, no record for Design Space) aren’t nearly as impressive as ModSpace to WSC at $60M. Modspace, at $1.1B, is a much bigger player in the industry and can add substantial future growth to WSC in the shape of VAPS - this is one of the core pillars of growth for WSC. As a result, WSC has paid a lower price at just 6.6x EBITDA post synergy - so WSC does, in fact, have stronger bargaining power than McGrath."
1.1bn less 100m of working capital capture less 100m released real estate = 900m
900/160 = 5.6x. so possibly even better than you suggested above... bargain, really!
Mark Leonard, CEO of CSU - constellation software would be proud I think! Almost half the price paid for M&A compared to the 2nd place rival, and incumbents from adjacent industries.
Hi Trung,
What do you think about this recent short-seller research: https://dfresearch.substack.com/p/willscots-overlevered-fleet-with ??
Hi Max, i have replied in detailed in the SWI's chat. Overall, I acknowledge their point and given my explanations on the possible impact to WSC's business.