Self-storage group Kangaroo hops to it with acquisition south of the Border
● East Lothian-based group says that it plans further strategic acquisitions
Kangaroo Self Storage, an East Lothian-based self-storage business, has taken a significant step forward in its ambition for growth with an acquisition that triples the size of the business and extends its footprint into England.
In a deal worth £13m the self-storage company has acquired Smart Storage, the North-west of England’s leading independent self-storage business. Yesterday’s transaction was funded by a blend of debt and equity, with the senior debt provided by HSBC.
This latest acquisition comes on the back of Kangaroo’s expansion into Edinburgh last summer, where the storage company bought a large warehouse in Edinburgh’s Sighthill Industrial Estate.
Smart Storage has a portfolio of six self-storage facilities and includes a mixture of freehold and leasehold assets and provides a maximum lettable area of 240,000 sq ft. The stores are prominently located sites in Warrington, Widnes, Liverpool, Preston, Bromborough and Altrincham.
Kangaroo Self Storage already owns and operates three freehold stores across Scotland in Dundee, Glasgow and Edinburgh. The combined portfolio will see the Scottish group own and operate nine stores with a current lettable area of 310,000 sq ft and maximum lettable aea of 442,000 sq ft.
Chris Stevens, managing director at Kangaroo Self Storage, will become the CEO of the enlarged group. He said he planned further geographical expansion and “strategic acquisitions”.
He added: “I have spent some time now at Smart Storage’s stores and this has allowed me to get to know and listen to staff and customers alike. I’ve discovered passion and expertise in a loyal and hardworking workforce.
“And, like those at Kangaroo, Smart Storage have a very credible, successful and experienced management team with a track record of delivering growth through managing operational efficiencies and excellent customer service. There are some great ideas in Smart Storage that I will be bringing into Kangaroo.”
Mike Wilson, outgoing CEO of Smart Storage, said:“over the years, we built an exemplary team at Smart Storage and we are confident that it will continue to flourish, guided by Chris Stevens’ visionary leadership. We are delighted to have found such an inspirational purchaser for the business and are genuinely excited by Kangaroo’s expansion south of the Border. This transaction is good news for Smart’s Team members and their families and for the self storage industry as a whole.