Black Diamond Accelerates Modular Space Solutions Growth with Strategic U.S. Acquisition

• Acquires Vanguard Modular Building Systems for US$58.7 million plus US$3 million for deferred receivables for total purchase price consideration of US$61.7 million
• Grows Black Diamond’s diversified MSS Segment
• Doubles Black Diamond’s U.S. MSS platform and adds critical scale in the attractive education rentals vertical
• Modular Space Solutions (“MSS”) segment grows to 8,856 units representing more than two-thirds of Black Diamond’s consolidated rental revenue for the nine months ended September 30, 2020
• Purchase price consists of US$50 million of cash, the issuance of US$8.7 million of preferred shares, and US$3.0 million of common shares of Black Diamond
• Expands existing, secured, asset-based revolving credit facility (the “Facility”) to C$300 million from C$200 million with an additional uncommitted C$50 million accordion
• Webcast and Conference Call scheduled for December 1, 2020 at 12 PM MT / 2 PM ET
  

CALGARY, Alberta and FORT WORTH, Texas, Nov. 30, 2020 (GLOBE NEWSWIRE) -- Black Diamond Group Limited (“Black Diamond", the "Company" or "we"), (TSX:BDI), a leading provider of space rental and workforce accommodation solutions, today announced that its U.S. subsidiary, BOXX Modular Inc. has acquired Exton, PA-based Vanguard Modular Building Systems (“Vanguard”) for US$58.7 million (approximately C$76.3 million) plus deferred receivables of US$3 million (approximately C$3.9 million).

“With the addition of Vanguard, more than two-thirds of our pro forma consolidated rental revenue for the nine months ended September 30, 2020 is attributable to the MSS segment, up from 59% previously,” said Trevor Haynes, Black Diamond’s Chairman and CEO. “Over the last several years, we have continued to focus on growing our diversified MSS segment in light of the stable, recurring rental revenue being generated by our MSS assets. Vanguard doubles the size of our U.S. MSS platform and adds critical scale in the attractive education rentals market where Vanguard has built a robust business and solid reputation.”

Continued Mr. Haynes, “With the addition of 2,196 rental units from Vanguard, our MSS fleet has grown to 8,856 units across North America and we are well on track to achieve our longer-term goal of doubling our MSS rental units to approximately 11,000 by 2024 compared with 2019.”

Vanguard is a leader in the classroom rentals vertical and is well-positioned in key U.S. markets

Vanguard provides relocatable modular classrooms and commercial complexes in key markets in the eastern and southern U.S. By state, Vanguard’s largest markets are Virginia, North and South Carolina, and Texas. The acquisition provides Black Diamond with greater scale in the U.S. and strong customer relationships, especially among local school districts through which the Company expects to generate stable recurring revenues and steady growth.