Target Lodging, a Houston firm with operations in Oklahoma’s Anadarko Basin has entered into a $325 million merger with a Los Angeles-based acquisition company. Target’s better known as providing so-called “man camps” for oil and gas drilling plays.
Platinum Eagle Acquisition Corporation announced the merger with Target Logistics Management, LLC and another man camp provider, RL Signor Holdings, LLC. Target and Signor will become wholly-owned subsidiaries of Platinum Eagle.
The result will be a housing company with a combined value of an estimated $1.4 billion. Platinum paid $325 million cash for the merger with Target Lodging.
Platinum management indicated it intends to change its name to Target Hospitality Corp. and remain Nasdaq-listed under a new ticker symbol.
Targeting Lodging is headquartered in The Woodlands, texas and is the largest provider of turnkey accommodations in the U.S. It was in September when Target Lodging entered into an agreement to operate and manage Signor Lodging, a firm that provides specialty rental accommodations to oil and gas customers in Texas.
The September agreement expanded Target Lodging’s footprint in the Permian and the Anadarko Basins. Together, Target and Signor Lodging own and operate 22 communities in the U.S. with nearly 13,000 total beds supporting oil and gas and even some government agencies.
The combined company will be led by Target Lodging’s highly experienced management team, including President and Chief Executive Officer Brad Archer, Chief Financial Officer Andy Aberdale and Chief Commercial Officer Troy Schrenk, who will continue to serve in their respective roles. Stephen Robertson, Co-Founder of TDR Capital, the private equity firm that owns Algeco, the parent of Target Lodging, and also owns Signor Lodging, will serve as Chairman of the combined company and will be joined on the board by Gary Lindsay, a Partner at TDR Capital, and Jeff Sagansky, CEO of Platinum Eagle.
Brad Archer, CEO of Target Lodging, said, “We are thrilled to combine the assets of Signor with ours and the significant capital resources of Platinum Eagle. These transactions will create a powerful platform and enhance our financial flexibility to accelerate growth. ”
The respective boards of directors or managers, as applicable, of Platinum Eagle, Target Lodging and Signor Lodging have unanimously approved the proposed transaction. Completion of the proposed transaction is subject to Platinum Eagle stockholder approval, the condition that Platinum Eagle deliver a minimum of $225 million from amounts held in its trust account and the proceeds of additional equity raised certain regulatory approvals and other customary closing conditions. The parties expect that the proposed transactions will be completed in the first quarter of 2019.