Freight container lessor Triton International has agreed to a buy-out by Brookfield Infrastructure Partners (BIP) in a $13.3bn (€12.1bn) take-private deal.
BIP is buying Triton in a cash and stock transaction by offering $85 per Triton common share, consisting of $68.50 in cash and $16.50 in BIP’s subsidiary Brookfield Infrastructure Corporation (BIPC) class A exchangeable shares.
When the transaction closes, BIP’s equity investment is expected to be approximately $1bn, inclusive of the BIPC shares.
The deal values Triton’s common equity at around $4.7bn and reflects a total enterprise value of about $13.3bn.
Brian M Sondey, Triton’s CEO, said the sale price provides significant value to its investors and represents a 35% premium to the last closing share price.
Sondey added: “For our long-term shareholders, this transaction crystalises a total shareholder return of approximately 700% since the 2016 merger of Triton and TAL International.
“For our customers and employees, Brookfield Infrastructure’s significant resources and long-term investment horizon will support Triton’s franchise, underpin our commitment to providing unrivaled service, and support continued investment in our growing business.”
Sam Pollock, CEO of Brookfield Infrastructure, said: “This transaction provides Brookfield Infrastructure with a high going-in cash yield, strong downside protection, and a platform for growth in the transportation and logistics sector.
“The transaction consideration also provides the opportunity for Triton shareholders to benefit from owning a globally diversified portfolio of infrastructure assets within a platform that has a proven history of generating long-term value for its shareholders.”
Triton is the world’s largest owner and lessor of intermodal containers and is a provider of transportation logistics infrastructure supporting global supply chains. With a container fleet of over 7m twenty-foot equivalent units, Triton’s global operations include acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis.
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