Josh Arnold
Long/short equity

McGrath RentCorp's Businesses Are Worth More Broken Up

Overview and Thesis

McGrath RentCorp (NASDAQ:MGRC) is a business to business rental company that leases and sells modular buildings, leases electronic test equipment and leases liquid and solid containment tanks. The company is international but operates mostly in the US. MGRC operates in four segments: Mobile Modular, TRS-RenTelco, Enviroplex and Adler Tanks. Mobile modular engages in the leasing of modular buildings that are used as offices, classrooms, restrooms, construction offices or anything else you can think of. TRS-RenTelco rents and sells various electronic equipment including power test equipment, oscilloscopes, amplifiers and more. Adler tanks leases storage tanks for groundwater, wastewater, sewage, oil, etc. Finally, the Enviroplex business manufactures and sells classrooms to educational institutions in California. With shares...

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