General Finance Corporation (GFN) entered into a definitive agreement to acquire substantially all the assets and assume certain liabilities of the affiliated companies, Lone Star Tank Rental and KHM Rentals for a total purchase consideration of $95 million, subject to certain working capital and other adjustments to be determined after the closing date.

Lone Star leases portable liquid storage tank containers and containment products, as well as provides certain fluid management services, to the oil and gas industry in the Permian and Eagle Ford basins of Texas through a fleet of more than 1,200 units. Unaudited revenues for Lone Star for the year ended December 31, 2013 totaled $45 million.

“This business combination creates an exciting opportunity for us,” said Ronald F. Valenta, chief executive officer of General Finance Corporation. “Lone Star is led by an experienced and motivated management team and will be a strong fit with our North American leasing operations, enabling us to expand our level of services to our portable liquid storage tank container customers and further bolster our presence in the oil and gas industry. We believe this acquisition will position us to capitalize on the growth opportunities in our country’s key energy producing regions across Texas and to strengthen our capacity for increased revenue growth, profitability, and attractive shareholder returns.”

The company expects that the cash portion of the consideration payable at closing will be satisfied by $10 million from existing cash resources, $40 million from availability under an amended and expanded North American senior credit facility, which is currently at Pac-Van, and $25 million at the corporate level from a two-year secured term loan.

The transaction is expected to close early in the fourth quarter of the company’s fiscal year ending June 30, 2014.