Modulaire agrees €4.18 billion sale to Brookfield

By Leila Steed28 June 2021

Specialist modular workspace provider Modulaire Group - formerly Algeco - is to be sold to investment firm Brookfield Business Partners, in a deal worth US$5 billion (€4.18 billion).

Modulaire, which counts Algeco, Portacom Building Solutions, Carter Accommodation, Elliott and Advanté among its subsidiaries, serves industrial, infrastructure and public sector customers across the European and Asia-Pacific regions.

The company’s sale to Brookfield was agreed by its shareholders, specifically its majority owner UK-based private equity firm TDR Capital.

The deal will bring TDR’s involvement in Algeco/Modulaire to a close after 17 years. In 2004 is acquired a two-thirds share of Algeco for €320 million.

Gary Lindsay, partner at TDR Capital, said, “We are delighted that Modulaire will have a strong and experienced partner in Brookfield that will continue to support and invest in the business.

“We believe Brookfield will be a very positive shareholder for Modulaire and look forward to witnessing its continued success in the future.”

Modulaire, which reported total revenues of €320 million for the first quarter of 2021, said that while “subject to customary regulatory and competition clearances”, the acquisition deal is expected to be completed in the fourth quarter of this year.

[Click here to receive IRN’s weekly e-newsletter]

Brookfield Business Partners will in invest around $500 million of its own capital, with a further $1.6 billion of equity funds in the deal, andf the balance from institutional partners. 

Brookfield Business Partners is part of Canada-based Brookfield Asset Management, which operates in 30 countries and manages assets worth in excess of US$600 billion. Former Governor of the Bank of England, Mark Carney, is its Chair.

Anuj Ranjan, managing partner at Brookfield Business Partners, said, “We are pleased to expand our European operations with the acquisition of Modulaire, a market leader in the attractive, growing modular workspace sector.

“We look forward to bringing our global scale and capabilities in owning and operating leading infrastructure services businesses to support Modulaire’s growth, in partnership with the management team.”

According to Modulaire, which has a fleet of around 260,000 modular units and 180 branches, its “experienced management team” will remain in place after the sale and will continue to drive its growth strategy.

Mike Smith, chairman of Modulaire Group, said: “Modulaire has made huge strides as a business over recent years and Brookfield’s investment is testament to the progress that has been made.

“I would like to thank TDR for the huge support they have given the management team and the business more broadly, helping set Modulaire up for continued growth in the future.”

Due to the size of the transaction, legal firms Goldman Sachs International, Morgan Stanley, JP Morgan and STJ Advisors and Linklaters, were all involved in varying capacities during its negotiation.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, International Rental Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Latest News
JCB shows new articulated boom at Rental Show
JCB has used The Rental Show to showcase its new AJ48D articulated boom, the second model the company has officially debuted for the North American market
Sany shows telehandler range at The Rental Show
Sany showcased a full range of telehandlers at The Rental Show following its initial debut into the market in 2020
When will the China access market reach maturity?
The Chinese MEWP sector is still growing quickly, at around 40% year-on-year, but is several steps from maturity 
CONNECT WITH THE TEAM
Murray Pollok Managing Editor Tel: +44(0)1505 850 043 E-mail: murray.pollok@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA