WillScot Mobile Mini Scores A Big Win With McGrath Acquisition – Merger Arbitrage Mondays

McGrath RentCorp (MGRC): $129.28

Market Cap: $3.03 billion

When a company announces a large all stock or stock plus cash acquisition, the stock of the acquiring company usually takes a small hit either because the acquirer is deworsifying (in Peter Lynch parlance), ends up with a leveraged balance sheet or because arbitrageurs could be shorting the stock.

In the case of WillScot Mobile Mini’s (WSC) $3.8 billion cash or stock acquisition of McGrath RentCorp (MGRC) that was hardly the case. In fact, WSC saw its stock price rise in the immediately aftermath, creating a negative spread on this “special conditions” deal. Before exploring the companies further, I have included a screenshot of the deal below and you can access all the details form our deal metrics page here.

McGrath RentCorp Business

McGrath RentCorp provides modular buildings (including its Kitchens to Go), portable storage, electronic test equipment segment (TRS-RenTelco), storage of hazardous and non-hazardous liquids and modular buildings used as classrooms.

Only plus or premium subscribers can access this post. Subscribe today.