Company: MGRC
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023116
Chunk: 13

Company: MCGRATH RENTCORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 13
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 assets of Inland Leasing and Storage, LLC ("Inland Leasing"), for a purchase price of $3.8 million.  Inland Leasing was a regional provider of portable storage solutions in the Colorado market and is highly complementary to the Company's Portable Storage business segment.  The acquisition grew the Portable Storage fleet by approximately 600 units, which will further support the Colorado market.  The acquisition was accounted for as a purchase of "assets" in accordance with criteria in ASC 805 and the assessment of the fair value of the purchased assets was allocated primarily to rental equipment totaling $3.0 million and intangible assets totaling $0.7 million. Supplemental pro forma information has not been provided as the historical financial results of Inland Leasing were not significant.  Incremental transaction costs associated with the asset purchase were not significant.The following tables summarize the purchase price allocations reflecting estimated fair values of assets acquired and liabilities assumed in the Vesta Modular, Brekke Storage and Dixie Storage business acquisitions, with excess amounts allocated to goodwill.  The assets acquired and liabilities assumed were based upon their fair values on the closing date.  The valuation of intangible assets acquired is based on certain valuation assumptions including cash flow projections, discount rates, contributory asset charges and other valuation model inputs. The valuation of tangible long-lived assets acquired is dependent upon various analyses including an analysis of the condition and estimated remaining economic lives of the assets acquired.

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 Vesta Modular:

        (dollar amounts in thousands)

        Rental equipment
         
        $
        212,639

        Intangible assets:

           Goodwill

        211,178

           Customer relationships

        29,900

           Non-compete

        7,100

        Trade name

        800

        Cash

        11

        Accounts receivable

        22,666

        Property, plant and equipment

        1,437

        Prepaid expenses and other assets

        3,550

        Accounts payable and accrued liabilities

        (26,202
        )

        Deferred income

        (14,273
        )

        Deferred income taxes

        (11,596
        )

        Total purchase price
         
        $
        437,210

      Brekke Storage:

        (dollar amounts in thousands)

        Rental equipment
         
        $
        10,798

        Intangible assets:

           Goodwill

        4,