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WillScot Mobile Mini (WSC) to Sell Tank & Pump Unit for $323M

WillScot Mobile Mini Holdings Corp. WSC inked a deal with a private equity firm Kinderhook Industries to sell its Tank and Pump segment for an enterprise value of approximately $323 million, subject to customary post-closing adjustments. WSC’s shares moved down 1.09% on Aug 22.

The transaction is expected to close in the third quarter of 2022, subject to customary closing conditions and regulatory approval. Notably, the company expects to redeploy the proceeds from the transaction to support its core Modular and Storage operating segments and other capital allocation priorities. It plans to channel these proceeds via organic reinvestment, continued tuck-in acquisitions, repurchases, and de-leveraging within the targeted range.

Impressively, WSC anticipates the minimal impact of the transaction on its third-quarter operating results.

Brad Soultz, chief executive officer of WSC, stated, “Today’s announcement is aligned with our long-term strategy of optimizing our core Modular and Storage segments and staying laser-focused on the growth levers that we articulated at our November 2021 Investor Day.”

The Tank and Pump segment contributed 5.7% to total revenues and 5.6% to adjusted EBITDA in the last six months. This business offers a broad range of liquid and solid specialty containment equipment and services complemented by an assortment of pumps, filtration units, and waste hauling services. The liquid and solid containment industry is also highly fragmented, consisting principally of local providers with a handful of regional and national providers. Its competitors include United Rentals, Rain For Rent, Adler Tanks, Sprint/Republic Services, and numerous other smaller competitors.

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Zacks Investment Research


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Shares of this Zacks Rank #3 (Hold) company have outperformed the Zacks Furniture industry in the year-to-date period. The company benefits from continuous product innovation, solid segmental results and transformation of the legacy WillScot business into Mobile Mini's SAP platform.

Yet, inflationary impacts and supply constrained are likely to put pressure on margins going forward.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some Better-Ranked Stocks in the Consumer Discretionary Sector

Marriott International, Inc. MAR is a leading worldwide hospitality company focused on lodging management and franchising. MAR is consistently trying to expand its presence worldwide and capitalize on demand for hotels in the international markets. Moving ahead, MAR plans to significantly expand its global portfolio of luxury and lifestyle brands.

Marriott currently carries a Zacks Rank #2 (Buy). In the past 60 days, the Zacks Consensus Estimate for 2022 earnings has been revised 6.8% upward. The Zacks Consensus Estimate for MAR's 2022 sales and earnings per share suggests growth of 46.1% and 101.3%, respectively, from the corresponding year-ago period’s figures.

Hyatt Hotels Corp. H has been benefiting from solid leisure transient demand, easing travel restrictions and ramping up airline capacity. Also, a focus on hotel openings and acquisition initiatives bodes well. Hyatt is consistently trying to expand its presence worldwide and has expansion plans in the Asia-Pacific region, Europe, Africa, the Middle East and Latin America.

Hyatt currently carries a Zacks Rank #2. In the past seven days, the Zacks Consensus Estimate for 2022 earnings has been revised 50% upward. The Zacks Consensus Estimate for H’s 2022 sales and earnings per share suggests growth of 89.1% and 110.9%, respectively, from the comparable year-ago period’s tallies.

Marriott Vacations Worldwide Corp. VAC has been witnessing improvement in occupancy rates, highlighting people’s willingness to go on vacations. During the second quarter of 2022, Marriott Vacations reported solid occupancies with respect to its Aqua-Aston business. VAC reported year-over-year growth in occupancies and RevPAR.

Marriott Vacations currently sports a Zacks Rank #1. In the past seven days, the Zacks Consensus Estimate for 2022 earnings has been revised 1.1% upward. The Zacks Consensus Estimate for VAC’s 2022 sales and earnings per share suggests growth of 19.7% and 131.4%, respectively, from the corresponding year-ago period’s actuals.


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