McGrath RentCorp shares hit a 52-week high Monday after the portable-building company agreed to be acquired by larger peer WillScot Mobile Mini Holdings for about $3 billion in cash and stock.
Under the agreement, McGrath shareholders can elect to receive $123 in cash or 2.8211 WillScot shares for each share held, with the total deal consideration consisting of 60% cash and 40% stock.
The cash consideration represents a roughly 10% premium to McGrath’s Friday closing price of $111.75, while the stock consideration, worth about $127.29 based on WillScot’s Friday closing price of $45.12, offers a premium of 14%.
Shares of McGrath, based in Livermore, Calif., were recently up 9.6% at $122.42 after touching a 52-week high of $123.52 early in the session, while WillScot shares slipped 0.6% to $44.86.
The transaction, which values McGrath at $3.8 billion, including about $800 million in net debt, is slated to close in the second quarter.