WillScot Mobile Mini Holdings Corp.’s WSC acquisition spree continues with the latest Allied Office Trailers and Storage Containers buyout. However, the terms of the conditions were not disclosed.
The company will now have 8,000 rental assets for its fleet of mobile offices and portable storage containers. The acquisition expands its existing footprint along the Eastern United States.
Shares of this North American leader in innovative, flexible workspace and portable storage solutions rose 2.3% during the trading session on Sep 19, 2022, following the news.
Acquisition: Key Growth Driver
WillScot Mobile Mini has been acquiring assets to expand its portfolio and complement its business. On Sep 14, WSC announced the acquisition of the dry rental storage fleet from Concord, CA-based Container Solution. With this acquisition, WSC will now have additional 1,200 portable storage containers and mobile offices. The terms of the deal were not yet disclosed.
On Jul 13, the company announced that it acquired the rental fleet and related assets of Modulease Corporation, a modular space and portable storage provider in the Northeastern United States.
Again, on May 16, WSC announced the acquisition of Elite Modular Leasing and Sales, Inc. The deal helped WSC add approximately 900 modular units to its existing California operations and particular expertise serving the public education sector.
On May 9, the company announced that it acquired the rental fleet and related assets from Georgia Storage Containers, Inc., enhancing its existing greater Atlanta operation with more than 1,000 storage units.
From January to April, the company closed three acquisitions. The buyout strategy helps WSC reach new customers, expand product and service offerings and create additional revenues and cost synergies. The company expects more acquisitions in the rest of 2022. WSC invested $46 million in acquisitions during the quarter, which is compounding with its organic initiatives, enabling the company’s growth heading into 2023.
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Shares of WillScot Mobile Mini have risen 30.8% over the past three months, against the Zacks Furniture industry’s 18.4% increase. Record order backlog and broad-based end-market strength are expected to aid the company in driving growth through 2022 and 2023.
Despite macroeconomic uncertainties, it expects robust demand to continue into 2023 given order backlog, prospects for infrastructure investment, net positive inflationary environment and own national account conversations. It continues to supplement its organic momentum with smart and disciplined acquisitions. This has helped the company to lift its outlook for 2022, which depicts further acceleration to run-rate heading into 2023.
WillScot Mobile Mini currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Better-Ranked Stocks to Consider
Dycom Industries, Inc. DY, currently flaunting a Zacks Rank #1, is benefiting from higher demand for network bandwidth and mobile broadband, extended geography, proficient program management and network planning services.
Dycom’s earnings for fiscal 2023 are expected to grow 142.1%. The company’s earnings estimates have increased to $3.68 from $3.28 per share over the past 30 days.
United Rentals, Inc. URI, presently sporting a Zacks Rank #1, has been benefiting from a broad-based recovery of activity across its end markets served. Higher margins from rental revenues and used equipment sales are added benefits.
The Zacks Consensus Estimate for URI’s 2022 earnings rose to $31.73 per share from $31.66 in the past 30 days. The estimated figure suggests 43.8% year-over-year growth.
Primoris Services Corp. PRIM, currently carrying a Zacks Rank #2 (Buy), provides a wide range of construction, fabrication, maintenance, replacement and engineering services.
PRIM’s 2022 earnings are likely to rise 18.4%. The company’s earnings estimates have increased to $2.57 from $2.47 per share over the past 60 days.
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