US Markets

EXCLUSIVE-Former Starboard executive pushes for sale of Mobile Mini -sources

The Donerail Group, an investment firm led by former activist hedge fund Starboard Value LP executive William Wyatt, has built a stake in Mobile Mini Inc and is pushing the world's largest provider of portable storage solutions to explore a sale, people familiar with the matter said on Wednesday.

By Greg Roumeliotis

Sept 11 (Reuters) - The Donerail Group, an investment firm led by former activist hedge fund Starboard Value LP executive William Wyatt, has built a stake in Mobile Mini Inc MINI.O and is pushing the world's largest provider of portable storage solutions to explore a sale, people familiar with the matter said on Wednesday.

The position, Donerail's first major investment, comes at a time of leadership changes at Phoenix, Arizona-based Mobile Mini, which announced in May that CEO Erik Olsson will become chairman in October. He will be succeeded at the helm by the President and Chief Operating Officer Kelly Williams.

Donerail has asked Mobile Mini to explore strategic alternatives, including a potential sale, given the fragmented nature of the portable storage sector, the sources said, requesting anonymity because the matter is confidential. It was not clear how Mobile Mini plans to respond.

Mobile Mini did not immediately respond to a request for comment. Donerail, which was launched by Wyatt last year, declined to comment.

Mobile Mini shares rose 5.3% to $34.90 on the news, giving the company a market capitalization of close to $1.6 billion. The company also had a debt pile of $900 million as of the end of June.

Mobile Mini has a rental fleet of about 198,000 storage containers and office units, as well 12,700 liquid and solid containment units and pumps that it also rents out. The company has 155 locations in the United States, Britain and Canada.

Mobile Mini's shares have lost 17% of their value in the last 12 months. The company's most recent quarterly earnings call in July said the business has been pressured by uncertainty fueled by Britain's protracted negotiations to cease membership in the European Union.

Mergers and acquisitions in the storage sector have been on the rise. Last year, WillScot Corp, another U.S. warehousing and storage services company, acquired Modular Space Holdings Inc, a provider of office trailers, portable storage units and modular buildings, for $1.2 billion.

(Reporting by Greg Roumeliotis in New York; Editing by David Gregorio and Nick Zieminski)

((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest US Markets Videos

    #TradeTalks: How Investors Start to Position Themselves in front of the Election

    WealthWise Financial CEO Loreen Gilbert joins Jill Malandrino on Nasdaq #TradeTalks to discuss what she is watching in the markets as investors start to position themselves in front of the election.

    Sep 10, 2020

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More