Black Diamond announces strategic acquisition of modular rental company
On October 31, 2022, Black Diamond Group Limited (“Black Diamond”) announced the closing of a strategic acquisition within its Modular Space Solutions (“MSS”) segment of an Ontario-based modular building rental company for a purchase price of C$54.5 million, including the assumption of debt.
The acquired rental company has 1,851 units primarily focused on the education and government sector. In addition to the purchase price, Black Diamond is funding approximately C$4 million of the target’s remaining 2022 growth capex for customers that signed long term contracts.
The target’s rental assets qualify as eligible inventory under Black Diamond’s asset based lending (“ABL”) facility, which will be drawn upon to fund most of the purchase price. To accommodate the purchase and provide available liquidity for future growth, in conjunction with the acquisition Black Diamond’s lenders are expected to increase the size of its ABL facility from C$300 million to C$325 million.
Further information can be found on Globe Newswire’s website.
Black Diamond owns and operates a portfolio of businesses specializing in modular buildings and remote and temporary workforce housing solutions, along with a digital marketplace for business-to-business crew travel management.