After acquiring PODS in early 2008, Arcapita’s team worked closely with the company’s management team to effect a series of operational and strategic improvements that enabled dramatic growth during our 7-year ownership period.
PODS has seen phenomenal growth in the moving and storage category since its inception. Founded in 1998 and headquartered in Clearwater, FL, PODS operates a fleet of mobile containers that are delivered to a customer’s doorstep that can be used for storage and moving. PODS’ geographic operation is segmented into both company-owned and franchise locations operating in the United States, Australia and Canada. Having expanded its network to reach over 229 million people, PODS has established itself as one of the most recognized brands in the industry.
PODS’ value proposition is compelling when compared to other moving and storage companies. The remarkable historical growth of PODS provided it with the ability to control and secure a valuable market share in a fast-growing niche that ultimately attracted the attention of other large moving and storage companies. PODS for many reasons became the industry change leader with exponential growth in the number of containers rented and revenue generated.
With a strong belief in the potential of the PODS business model and its potential for growth, Arcapita’s first priority after the acquisition was to reconstitute the management team. We recruited a new CEO and several other executives for the majority of the senior management team positions. In the first several years, this new management team stabilized the company, with heavy focus on basic execution. But despite the progress made in the first four years of our investment in PODS, we eventually saw a need to focus more heavily on top-line growth and recruited John Koch as the new CEO. John brought valuable experience as an executive capable of driving growth in service businesses. Under his leadership at PODS, the company developed a stronger organizational culture and placed far greater emphasis on providing products and services to meet the changing needs of our various market segments.
PODS is very active in the communities it serves and gives back through both financial donations and value-in-kind services. PODS’ mobile storage solution is particularly helpful for charities that are collecting donated goods to be redistributed. PODS donates over 1,000 containers per year for charitable use. Their two primary charities are Toys-For-Tots and the American Heart Association.
Read more on PODS social responsibility and community service.
Website : https://www.pods.com/PDF
PODS® pioneered the portable moving and storage industry with the concept of transporting mobile storage containers directly to customers and continues a strong growth trajectory. To date, the PODS network has completed more than 700,000 long-distance moves, exceeded 3 million deliveries and has more than 170,000 PODS containers in service.
ARCAPITA Key Value Creation Achievements
- Franchise acquisitions
- Capex for containers
- Opex for container repairs and marketing investments
- Strengthened pods’ US. unit economics with initiatives to lower operational overheads
PODS' Investment Merits
- PODS offers a highly compelling value proposition when compared to other moving and storage companies
- As an industry change leader with historical exponential growth in number of containers rented and revenue, the company’s value proposition is resonating within its target markets
- PODS has focused in the residential sector for moving and storage, but has initiatives to utilize its brand name and superior logistics systems to service commercial customers
- The company’s leading position in this fast-growing niche has attracted the attention of the large moving and storage companies
People With Whom We Invest Know Our Difference
“I believe the Arcapita team was instrumental in supporting the PODS management team in its efforts to grow the business. The Arcapita deal team and its expanded team of experts and consultants was professional and easy to work with and worked hand in hand with the management team to make improvements that directly led to measurable value growth in the overall business. They helped us to identify and carry out a number of initiatives that fundamentally transformed the company into a major player in the moving and storage industry.“