Shurgard has announced its acquisition of rival Lok’nStore in a deal valued at £378 million. This acquisition is set to double Shurgard’s presence in the UK, adding significant capacity and market reach.

Lok’nStore, which launched in 1995 and is listed on the AIM, operates 43 self-storage facilities across England and Wales in key locations including Bristol, Exeter, and Leicester. With this acquisition, Shurgard will gain an additional 171,000 square metres of space, comprising both operating stores and development projects, enhancing its network to over 276 stores across seven countries.

The focus of the expansion is particularly on increasing Shurgard’s footprint in the South East and Manchester, areas identified as strategic growth targets. The acquisition includes both operating facilities and sites under development, which promise to bolster Shurgard’s capacity in these regions.

However, the acquisition might lead to redundancies within Lok’nStore’s workforce, particularly in administrative and head office roles, as Shurgard plans to streamline operations to align with its existing business model.

Marc Oursin, CEO of Shurgard, expressed enthusiasm about the expansion, noting the strategic value of integrating Lok’nStore’s assets into Shurgard’s broader European market activities. Andrew Jacobs, Chair of Lok’nStore, also highlighted the benefits of the deal for shareholders and praised the strategic fit between the two companies’ assets and market positioning.

The deal is currently pending approval from Lok’nStore’s shareholders, who are poised to receive 1,110 pence per share in cash if the acquisition proceeds. This move marks a significant step in consolidating Shurgard’s position as a leader in the UK self-storage market