Algeco Scotsman said Wednesday that it has signed an agreement to acquire Target Logistics Management LLC, a provider of full-service remote workforce accommodation solutions in the United States.
The total consideration for the deal is up to about $625 million based on Target's financial projections. Of the total consideration, $275 million is payable at closing and about $350 million is deferred and linked to Target's expected strong performance over multiple years. The total closing consideration of $275 million is comprised of about $86 million in cash, $86 million of Algeco stock and $103 million of assumed indebtedness and working capital.
The cash consideration will be funded by existing facilities available to Algeco and the deferred consideration is payable principally in Algeco stock.
The deal is expected to be completed by the end of February 2013.
by RTT Staff Writer
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