Container owner Triton goes private with $4.7 billion takeover Ship’s crew

By Layan Odeh and Derek Decloet (Bloomberg) –

Brookfield Infrastructure Partners LP agreed to purchase Triton International Ltd., the world’s largest owner of intermodal shipping containers, for $4.7 billion to expand transportation logistics to support the global supply chain.

Toronto-based Brookfield will pay $85 per share, including $68.50 in cash, the companies said early Wednesday, representing a 35% premium to Triton’s closing price on Tuesday. The acquisition, which is subject to Triton shareholder and regulatory approvals, is expected to close in the fourth quarter.

Triton was up 32% to $83.06 as of 12:31 p.m. New York, while shares of Brookfield Infrastructure were little changed.

“Triton is an attractive company with highly contractual and stable cash flows, strong margins and a track record of creating value,” Brookfield Infrastructure chief executive officer Sam Pollock said in a statement. The transaction brings “strong loss protection and a platform for growth in the transport and logistics sector,” he said.

Including debt, the deal is valued at $13.3 billion.

‘Attractive’ return

Although deal flow was expected to slow this year, the acquisition “brings in an attractive estimated cash yield of 13-15%,” National Bank analyst Patrick Kenny said in a note to clients.

Global supply chains have been disrupted for years by the Covid-19 pandemic, although the pressure has eased recently. Delivery delays and the war in Ukraine have disrupted production and caused food shortages, contributing to inflation.

Triton’s shares had doubled in the past three years before the deal was announced on Wednesday. Based in Bermuda and listed on the New York Stock Exchange, the company has a fleet of more than 7 million 20-foot container units.

Upon closing, Brookfield Infrastructure’s equity investment is expected to be approximately $1 billion, including shares in the Canadian company.

(Adds stock price and analyst comments from third paragraph)

© 2023 Bloomberg LP

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