 Algeco is the leading European modular construction business.
Algeco offers space rental solutions throughout 18 European countries, including Belgium, the Czech Republic, Estonia, Finland, France, Germany, Italy, Lithuania, Luxembourg, the Netherlands, Poland, Portugal, Romania, Russia, Slovakia, Spain and the United Kingdom. Algeco serves over 30,000 customers in the areas of construction & infrastructure, industry, services and administration. Its fleet of approximately 240,000 modular space and storage units is leased through a network of more than 100 locations.
Algeco is now part of Algeco Scotsman, the leading global provider of modular space and storage solutions. The combined group manages a fleet of more than 335,000 units with operations in 21 countries throughout Europe and North America, making it the world leader in the space rental sector and one of the world's largest businesses in the rental services sector.
Transaction
In September 2004 TDR acquired a controlling stake in Algeco SA from TUI AG and public shareholders. In 2005 Algeco acquired the Elliott Group, the leading UK supplier of modular space from the Davis Service Group plc. In 2007 Algeco acquired Wraith plc in the UK, GE ModSpace and Williams Scotsman International to create the leading global participant in the modular space industry.
Investment Overview
We believed that the rental modular space business presented an opportunity to invest in an inherently high return sector that offers high quality cash flows (due to the stability and visibility of its rental stream) at a time when there was a dislocation in the market valuation between attractive unit economics and the overall low valuations being applied to the businesses as a whole.
During our ownership we have sought to reposition the business away from manufacturing and sales towards the more attractive rental business. Through the series of add-on acquisitions Algeco Scotsman became the leading global player, where consolidating the additional businesses resulted in significant synergies and operational improvements in areas such as pricing, back office operations, innovation and product convergence.
We have positioned the business to allow it to grow into new markets organically and during TDR's ownership the business has expanded into Russia, the Nordics, the Baltics, Eastern Europe and the Middle East.
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