Algeco Scotsman Announces Intended Acquisition of Iron Horse Ranch by TDR Capital
Transaction would Expand Target Logistics’ Presence in Permian Basin
BALTIMORE – July 3, 2017 – Algeco/Scotsman Holding S.à r.l. (“AS Holding” and together with its subsidiaries, the “Algeco Group”), the leading global business services provider of modular space, secure portable storage solutions and remote workforce accommodations, and Iron Horse Managing Services, LLC and Iron Horse Ranch Yorktown, LLC (together, “Iron Horse Ranch”), announced today the intended acquisition, by a subsidiary of AS Holding’s majority shareholder, TDR Capital LLP (“TDR Capital”), of substantially all the assets, and the assumption of certain liabilities, of Iron Horse Ranch. TDR Capital expects the deal to close in the third quarter of 2017.
The intention is that Iron Horse Ranch will subsequently be integrated with the Algeco Group’s North American Remote Accommodations business, Target Logistics. In the interim, TDR intends to enter into a services agreement with Target Logistics, pursuant to which Target Logistics will manage Iron Horse Ranch. Iron Horse Ranch would significantly increase Target Logistics’ scale and market share in the fast-growing Permian Basin.
The acquisition would solidify Target Logistics as the single largest provider of turnkey workforce housing in the U.S., including a network of eight lodges and 1,900 beds in the Permian Basin. With the integration, Target Logistics’ Permian Basin lodge network would include Texas lodges in Pecos, Mentone, San Angelo and two in Odessa, along with two lodges in Carlsbad and Lovington, New Mexico. Additionally, Target Logistics would add Eagle Ford lodges in Cameron and Yorktown, Texas.
"This transaction represents a strategic acquisition for Algeco Scotsman and Target Logistics, and would increase our leading position in the crucial Permian Basin and expand our presence in the Eagle Ford. Iron Horse Ranch perfectly complements our existing footprint, and would broaden our offerings to this attractive market and enable us to deliver more flexibility to our current and future customers," said Algeco Scotsman Chief Executive Officer Diarmuid Cummins.
"We look forward to the prospect of welcoming Iron Horse Ranch to our team. Our two companies could not be more aligned in their commitment to helping customers realize their full potential by delivering a safe and comfortable environment outside of the 12 hours they are on the job. Similar to Target Logistics, Iron Horse Ranch has earned a reputation for service quality and a guest experience that is focused on worker safety, productivity and reliability," said Target Logistics President and Chief Executive Officer Brad Archer.
"I am thrilled at the possibility of Iron Horse Ranch moving forward with industry leaders Algeco Scotsman and Target Logistics, companies that share our vision and have always strived for a collective focus on quality and service. I cannot think of two companies that are more parallel in their quality, customer service and standards than Target Logistics and Iron Horse Ranch. I am honored by the prospect of Target Logistics acquiring Iron Horse Ranch and continuing to deliver high-quality service with a broader network of lodges. I am proud of the company that we have built and we are excited for its future," said Iron Horse Ranch owner and Chief Executive Officer Juan Gutierrez.
"The combination of Iron Horse Ranch and Target Logistics would bring together two industry leaders that have built similar business models and have worked tirelessly at building a reputation centered on safety, quality and customer service. The alignment of our two companies would position Target Logistics as the go-to solution in the Permian Basin and would increase flexibility and help support our customers moving forward. We couldn’t be more excited by the prospect of the unified future of Iron Horse, Target Logistics and Algeco Scotsman," said Iron Horse Ranch owner and Chief Operations Officer Anthony Broussard.
During the acquisition and integration process, it will be business as usual for the entities involved.
To see a complete list of Target Logistics lodges around the world, visit Check Availability. With the addition of Iron Horse Ranch, Target Logistics would own and/or operate 24 properties in the United States and Canada with more than 9,500 total beds.
Cautionary Notice Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the securities laws of certain applicable jurisdictions, which reflect the Algeco Group’s expectations regarding the acquisition of Iron Horse Ranch and its integration with Target Logistics as well as 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 Algeco Scotsman
Algeco Scotsman is the leading global business services provider focused on modular space, secure portable storage solutions, and remote workforce accommodation management. Headquartered in Baltimore, Algeco Scotsman has operations in 25 countries with a modular fleet of approximately 274,000 units. The company operates as Williams Scotsman and Target Logistics in North America, Algeco in Europe, Elliott in the United Kingdom, Ausco in Australia, Portacom in New Zealand, and Algeco Chengdong in China.
About Target Logistics
Target Logistics, an Algeco Scotsman company, is one of the largest providers of turnkey housing solutions in North America. It operates globally in some of the most remote environments, supporting oil, gas and mining with workforce housing, mobile crew camps and extended-stay hotels; government departments and organizations with temporary lodging and refugee integration; and capital projects. Target Logistics was named by Inc. magazine in 2012 and 2013 as one of "America’s Fastest Growing Private Companies." Visit www.targetlogistics.net or call (800) 832-4242.
About Iron Horse Ranch
Iron Horse Ranch is an industry leader in workforce housing for the Oil, Gas and Construction industries. Iron Horse Ranch specializes in turnkey remote camp installation, operation, project management and land acquisition. Iron Horse Ranch has one of the highest standards in workforce and temporary housing. Winning awards for Service, Quality and Operational Excellence. Iron Horse Ranch operates 6 workforce lodging facilities in North America with over 1000 beds. For more information on Iron Horse Ranch, please visit http://www.ironhorseranch.com
Investor Relations Contact
Vice President, Finance
Pierpont Communications for Target Logistics