Lok'nStore — Acquisition by Shurgard Self Storage
UK self-storage operator Lok'nStore acquired by Shurgard Self Storage, illustrating how valuable property assets, a development pipeline and occupancy growth opportunities can produce a valuation substantially above typical SME self-storage earnings-based multiples.
This transaction involved a business above the $1m–$50m SME revenue benchmark. It is included for industry context and is not a direct SME comparison.
Acquirer
Shurgard Self Storage
Year
2024
Indicative Enterprise Value
~£408m
Revenue
£27.1m (FY2023)
Adjusted EBITDA
£15.1m (FY2023 Adjusted EBITDA)
Implied EV / Adjusted EBITDA
~27.1×
Industry
Self-Storage Business
Transaction
In August 2024, Shurgard completed its acquisition of UK self-storage operator Lok'nStore, following an agreed cash offer announced in April. The transaction valued Lok'nStore's equity at approximately £378 million. Lok'nStore operated 43 facilities at the time of the announcement, comprising 17 owned stores, nine leased stores and 17 managed stores. Its FY2023 revenue was £27.1 million, with adjusted EBITDA of approximately £15.1 million. Using an indicative enterprise value of £408 million, the transaction implies approximately 27.1× FY2023 adjusted EBITDA. Shurgard identified opportunities to increase occupancy from approximately 67% toward 90% at stabilisation and expected €4 million–€5 million in annual operating, administrative and tax synergies. The acquisition provided an established UK operating platform alongside property assets, future development opportunities and strategic expansion into the South East and Manchester.
Why the Premium?
- Recurring rental income from household and business customers
- Established portfolio of owned, leased and managed facilities
- Valuable freehold property interests
- Occupancy growth and rental pricing opportunities
- Secured development pipeline including eight owned sites under development
- Geographic expansion and operating synergies
SME Takeaway
At approximately 27.1× adjusted EBITDA, the transaction sits well above SME Multiples' indicative 6×–12× range for smaller self-storage businesses. The difference reflects the scale and property-backed nature of the acquisition. Shurgard acquired an established operating business alongside valuable real estate, a development pipeline and opportunities to improve occupancy and operating efficiency. For smaller self-storage businesses, EBITDA remains a useful earnings measure, but property ownership, occupancy, rental rates, capital expenditure and local market conditions can materially affect valuation. Net asset value and property capitalisation yields may also be important, particularly where the business owns its facilities. The implied multiple is calculated using indicative enterprise value and historical adjusted EBITDA. It is not representative of a typical single-site SME self-storage business.
Sources
Disclaimer: Case study figures are based on publicly available information and are provided for illustrative purposes only. Transaction values, EBITDA figures and implied multiples may reflect different reporting periods, definitions and deal structures, and some multiples are calculated from disclosed figures rather than reported by the parties. They are not formal valuations, investment advice or a substitute for independent professional advice.