Company: MGRC
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023116
Chunk: 14

Company: MCGRATH RENTCORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 14
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083

           Customer relationships

        949

           Non-compete

        59

        Property, plant and equipment

        875

        Deferred income

        (382
        )

        Total purchase price
         
        $
        16,382

       Dixie Storage:

        (dollar amounts in thousands)

        Rental equipment
         
        $
        2,758

        Intangible assets:

           Goodwill

        1,555

           Customer relationships

        259

           Non-compete

        22

        Property, plant and equipment

        318

        Deferred income

        (161
        )

        Total purchase price
         
        $
        4,751

       The value assigned to identifiable intangible assets was determined based on discounted estimated future cash flows associated with such assets to their present value.  The combined acquired goodwill of $216.8 million reflects the strategic fit of Vesta Modular, Brekke Storage and Dixie Storage with the Company’s modular and portable storage business operations. The Company amortizes the acquired customer relationships over their expected useful lives of 11 years for Vesta Modular, 8 years for Brekke Storage and 9 years for Dixie Storage.  The expected useful life for the non-compete agreements is 5 years.  The trade name intangible acquired from the Vesta Modular acquisition was amortized over it's useful life of nine months.  Goodwill is expected to have an indefinite life and will be subject to future impairment testing.  The goodwill is deductible for tax purposes over 15 years. The following table reports the actual results of the Company for the year ended December 31, 2024, and the unaudited pro forma financial information for the year ended December 31, 2023.  The pro forma financial information shows the combined results of continuing operations of the Company and Vesta Modular as if the acquisition occurred as of the beginning of the period presented.  The pro forma results include the effects of the amortization of the purchased intangible assets and depreciation expense of acquired rental equipment valuation step up, interest expense on the debt incurred to finance the acquisitions.  A pro forma adjustment has been made to reflect the income taxes that would have been recorded at the combined federal and state statutory rate of 26.5% on the acquisitions’ combined net income. The pro forma results for the year ended December 31, 2023,