Three Canadian companies announced yesterday that they are signing a term sheet to enter into a joint venture together. The three companies, StorageVault, Can-Stor Self Storage LP and CSS Holdings LP, plan to introduce the portable unit concept (PUPS) to their properties. They intend to integrate their fixed storage with PUPS businesses at each of their properties.
The term sheet is only a very preliminary step. At this point, it is tentative — the term sheet itself must be agreed upon and approved by the Boards of Directors of each company, the joint venture itself must be approved, and shareholders and investors for each company may have to approve, before the joint venture can move forward at all. Once all those approvals are obtained, the TSX Venture Exchange must also approve.
StorageVault Canada is a publicly traded company, listed on the TSX Exchange. StorageVault purchased PUPS Portable Storage for $1.33 million more than a year ago, and currently owns and operates three PUPS businesses, Canadian PUPS portable storage of Saskatoon, Trans Can Mini-Stor in Regina and Kenaston Self Storage in Winnipeg. The way PUPS storage works is that the company delivers portable storage containers to home and business customers, the customers fill the portable storage units, and the company transports them to a storage facility. When StorageVault bought PUPS, it also bought the franchise rights for a period of ten years, with four additional renewable ten year periods.
Can-Stor Self Storage owns one self storage facility and is developing other facilities in southwestern Ontario, Canada. Can-Stor has been in business since 2007.
The PUPS franchise was the first portable storage business in Canada. The first PUPS business in Canada was established in Regina, Saskatchewan, in 2006. The PUPS concept is growing in Canada, but it began in the United States ten years ago, when brothers Mike and Tim Greene founded PODS. At the time, portable storage was a new idea. “What amazes us the most about PODS is the wide range of applications it can be used for, including local or long distance moves, on-site home renovations, seasonal storage, an additional garage that is warehoused at one of our state of the art facilities, and even as a field storage unit for recovery or research,” says Tim Greene. “It truly makes some of life’s challenges simpler. When we started in 1999 we were simply an alternative to mini storage and local truck rentals. Now, we can move people virtually anywhere in the continental U.S., Canada, Hawaii, and Australia.”