Mcgrath Rentcorp · NASDAQ:MGRC
Mcgrath Rentcorp — Merger or Acquisition (February 2023)
12 slides from Mcgrath Rentcorp's merger presentation, Feb 1, 2023
Slide 1: Focusing the Portfolio on Mobile Modular
Exhibit 99.2 FEBRUARY 1, 2023 Focusing the Portfolio on Mobile Modular McGrath to Acquire Vesta Modular and Divest Adler Tank Rentals PAGE 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include: (1) the Vesta
Slide 3: Focusing the Portfolio on Modular Through Simultaneous Acquisition of Vesta and Divestiture of Adler
Focusing the Portfolio on Modular Through Simultaneous Acquisition of Vesta and Divestiture of Adler Accelerates McGrath’s strategic growth priorities by increasing exposure to the modular business Creates a more competitive and larger scaled modular business with increased geographic coverage and d
Slide 4: Transaction Overview
Transaction Overview McGrath to purchase Vesta from Kinderhook for $400M Purchase Price of Implied FY2022E EBITDA transaction multiple of 7.7x (including run-rate synergies and present value of NOLs) Vesta Estimated $8M of run-rate EBITDA synergies by 2024 and $30M of value from Net Operating Losses
Slide 5: Transaction Significantly Focuses the Portfolio and Scales the Mobile Modular Business
Transaction Significantly Focuses the Portfolio and Scales the Mobile Modular Business ✓ Mobile Modular segment’s high EBITDA margins, recurring revenue, and Adler favorable demand make it TRS 13% a highly attractive business 20% TRS 21% Mobile ✓ Mobile Modular’s diverse Mobile Modular end markets p
Slide 6: Transaction Supports All Aspects of McGrath's Company Priorities
Transaction Supports All Aspects of McGrath’s Company Priorities McGrath’s Consistently Communicated Company Priorities… …Are Supported by Today’s Announcement Centered on largest business segment - Modulars STRATEGIC Increasing geographic coverage 1 GROWTH Expanded solutions offering to customers -
Slide 7: Vesta Modular Overview
Vesta Modular Overview BUSINESS OVERVIEW Vesta is a provider of temporary and permanent modular space solutions, and facilitates modular building processes including design, construction, and installation of projects $129M ~6,000 2022E Revenues Total Units Scope of business includes both modular spa
Slide 8: Vesta Modular Overview (continued)
Vesta Modular Overview (continued) DIVERSITY OF ASSET TYPE AND Leasing Custom Solutions REVENUE STREAMS Other 3% Rental of Sale of Value Added Delivery and Standard Sale of Custom Turnkey Design Modular Buildings and Engineering Services Install Services Buildings Buildings Classroom Office 48% 49%
Slide 9: Vesta Geographic Coverage
Vesta Geographic Coverage Vesta operates strategically in some of the nation’s fastest growing markets: • Atlanta, GA • Elkhart, IN • Dallas, TX • Houston, TX • Miami, FL • Nashville, TN • Riverside, CA • Sacramento, CA PAGE 9
Slide 10: Mobile Modular + Vesta Geographic Coverage
Mobile Modular + Vesta Geographic Coverage Expands footprint with strategically located assets 13 States with New Geographic Coverage 15 States with Increased Geographic Density PAGE10
Slide 11: Significant Synergy Opportunities
Significant Synergy Opportunities McGrath anticipates it can achieve run-rate synergies of $8M per year or more once Vesta is fully integrated REVENUE SYNERGY OPPORTUNITIES COST SYNERGY OPPORTUNITIES Improved combined fleet utilization Real estate & yard consolidation Higher market penetration throu
Slide 12: Delivering Value for McGrath Shareholders
Delivering Value for McGrath Shareholders Accelerates Enhanced Scale Modest Modular Strategy and Platform for Pro Forma Long Term Modular Leverage Growth Business Long term growth Achieved sale of opportunities, non-core tank rental Enhanced scale, Leverage of 2.1x 2022 leveraging Vesta business and
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