General Finance Buys Texas Tank Storage CompanyTuesday, March 4, 2014
General Finance Corp. has expanded its capabilities in the liquid containment storage industry by signing an agreement to acquire Texas tank operator Lone Star.
Pasadena-based General Finance., which also has businesses in mobile and modular storage markets, said Monday the deal was worth $95 million, including assumptions of liabilities.
Lone Star is comprised of Lone Star Tank Rental of Kermit and KHM Rentals of Kenedy. Both companies primarily serve the oil and gas industry, with unaudited revenue of $45 million last year.
"This business combination creates an exciting opportunity for us," Chief Executive Ronald F. Valenta said in a statement. “We believe this acquisition will position us to capitalize on the growth opportunities in our country's key energy producing regions across Texas.”
General Finance shares on Tuesday closed up 25 cents, or 3.5 percent, to $7.50 on the Nasdaq.