TDR Capital makes offer for Target Hospitality

London-based private equity firm TDR Capital has made a non-binding offer to take private Target Hospitality, a Texas-based provider of workforce housing and related services, at a price of $1.50 per share for the stock outstanding that it doesn’t already own, a regulatory filing shows.

Shares of the largest provider of “man camps” to oilfield companies in the Permian Basin have tumbled along with oil prices this year, falling to 94 cents per share on 4 November from a 2020 closing high of $5.64 on 3 February. The stock surged more than 50% on 5 November following the announcement of the offer.

Formerly known as Target Lodging, the company was acquired in March 2019 by a blank check company and taken public in a transaction valued at about $1.4bn. At the time, shares in the special purpose acquisition company that bought Target traded around $10 each.

Target Hospitality primarily serves the energy and government sectors and has a network of 25 communities with over 13,000 rooms.

Source: Private Equity News