SPAC merging with shale workforce housing giant Target Lodging

By Luke Geiver | November 14, 2018

Special purpose acquisition companies (SPACS) are now looking beyond the exploration and production business and into the temporary housing service providers that serve E&P crews, service providers and the long list of oilfield workers. Platinum Eagle Acquisition Corp, a publicly-traded SPAC, has announced plans to merge with Target Logistics Management LLC and RL Signor Holdings LLC.

Through the deal, Target and RL Signor will become subsidiaries of Platinum Eagle but will use a new name and ticker symbol. The new name will be Target Hospitality Corp.

Both Target Logistics and RL Signor have a major presence in the temporary housing markets necessary in several of North America’s most active shale plays.

Earlier this year, Target agreed to operate RL Signor’s operations in Texas. In addition to past work in the Williston Basin, Target is most active in the Permian and Anadarko Basins. The combination of Target and RL Signor operates 13,000 total beds in 22 communities, many of them linked to oil and gas development. In addition to oil and gas, the lodging companies also provide housing for government agencies and contractors.

 According to Platnium Eagle, the deal is valued at roughly $1.4 billion.