Canadian Self-Storage Operator StorageVault Completes $51M Deal With Access/Cubeit

Update 10/12/15 – StorageVault Canada Inc. has completed the second of two tranches in the self-storage operator’s purchase of Cubeit Portable Storage Canada Inc. and seven storage facilities operated by Access Self Storage Inc. The tranche of $27.2 million includes the final three Access properties comprising 186,000 square feet in 1,657 units, according to a press release.

In September, the parties agreed to swap out two Ontario properties and a Quebec property in favor of a larger Ontario asset of equal value. The decision was made to “improve operational efficiencies for StorageVault when compared to the originally contemplated properties,” the release stated. The asset change didn’t alter the original purchase price.

A portion of the second tranche was paid with the issuance of more than 32.4 million StorageVault common shares to Access worth $12.3 million. The remainder was paid with the assumption of a $4.7 million mortgage and cash drawn from StorageVault credit, according to the release.

Upon completion of the second tranche, StorageVault issued more than 26.4 million common shares to Access, which now controls more than 56.6 million shares representing 42.09 percent of all issued and outstanding common shares, officials said. Access can increase or decrease its StorageVault investment depending on market conditions and other factors.

StorageVault now operates 17 self-storage facilities and more than 3,200 portable-storage units in Alberta, British Columbia, Manitoba, Ontario, Quebec, Saskatchewan and Nova Scotia.

4/30/15 – StorageVault Canada Inc. has completed the first of two tranches in the self-storage operator’s purchase of Cubeit Portable Storage Canada Inc. and nine storage facilities operated by Access Self Storage Inc. The first tranche of $26.5 million includes the entire Cubeit business and four Access properties, according to a press release.

A portion of the first tranche was paid with the issuance of more than 30.2 million StorageVault common shares to Access at 38 cents per share. The remainder was paid with nearly $15 million in cash, according to the release.

In conjunction with the completion of the first tranche, StorageVault has reconstituted its board of directors. The board now consists of Rob Duguid and Alan Simpson from investment-management firm PFM Capital Inc., and Iqbal Khan, Steven Scott and Blair Tamblyn from Access and Cubeit.

Scott will replace Simpson as StorageVault CEO, and Khan will take over as chief financial officer from Glenn Fradette. Simpson will continue as executive vice chairman, while Fradette will remain with the company for six months to assist with the transition, according to the release.

The closing of the second tranche is expected to occur by Oct. 1.

3/5/15 – StorageVault Canada Inc. will have until April 30 to complete the first of two tranches in the self-storage operator’s purchase of Cubeit Portable Storage Canada Inc. and nine storage facilities operated by Access Self Storage Inc. The initial deadline of Feb. 2 was extended by mutual agreement of all parties involved in the deal, according to a press release. The extension will enable StorageVault to complete its due diligence, company officials said.

As part of the extension, the initial condition period of the $51.3 million deal has been extended to April 24. StorageVault also has received conditional acceptance from the TSX Venture Exchange, but the transaction remains subject to final acceptance. All other terms of the proposed acquisition remain the same, according to the release.

12/9/14 – Canadian self-storage operator StorageVault Canada Inc. has agreed to purchase all of the rights and assets of Cubeit Portable Storage Canada Inc. and nine storage facilities operated by Access Self Storage Inc. for $51.3 million. The acquisition will occur in two tranches and is subject to approval by the companies’ boards of directors, which is required by Feb. 2, 2015, according to a press release.

The first tranche includes four Access properties and the entire Cubeit business portfolio for approximately $25.6 million. The self-storage facilities comprise 133,000 square feet in about 1,500 units. The Cubeit business operates out of eight Canadian locations and includes 1,254 portable-storage containers. The deal includes a payment of more than 23.5 million StorageVault common shares at 38 cents per share, which is worth more than $8.95 million. The expected closing date on the first tranche is March 10, 2015.

The second tranche includes five Access self-storage facilities, comprising 250,000 square feet in 2,500 units, for approximately $25.7 million. The agreement includes a payment of more than 23.6 million StorageVault common shares at 38 cents per share, which is worth more than $8.99 million. The expected closing date on this tranche is Oct. 1, 2015.

As part of the agreement, the StorageVault board of directors will be restructured to include CEO Alan Simpson, a nominee from investment-management firm PFM Capital Inc., and three nominees from Access and Cubeit. If the second tranche of the agreement is terminated for any reason, the board of directors would be composed of Simpson, three nominees from PFM Capital and one nominee from Access/Cubeit, according to the release.

Another provision of the agreement requires Access and Cubeit to purchase “all of the issued and outstanding shares in the capital of Canadian PUPS Franchises Inc.,” which is the master franchisor of StorageVault's PUPS portable-storage business.

A five-year business plan connected to the transaction also lays out the possibility of future StorageVault acquisitions of additional Access assets, although it is not a requirement of the deal.

Trading of StorageVault common shares on the TSX Venture Exchange (TSXV) will remain halted until documentation required by TSXV has been reviewed and accepted, according to the release.

Access and Cubeit have been in the storage business for more than 16 years and operate 60 locations comprising more than 4 million square feet of fixed storage space and more than 1,250 portable-storage units. Access Self Storage facilities are in Alberta, Manitoba, Ontario, Quebec and Nova Scotia. The portable-storage business operates under the Cubeit brand, with operations in Alberta, British Columbia, Ontario, Quebec and Nova Scotia.

StorageVault owns six Canadian self-storage facilities, five of which are operated in conjunction with a PUPS portable-storage franchise. The company also operates standalone Canadian PUPS facilities in Edmonton, Alberta, and Saskatoon, Saskatchewan.