Brookfield Infrastructure Partners is acquiring Triton International Limited for approximately $4.7 billion in cash and stock, valuing the container-leasing company’s equity at $13.3 billion.
Triton is the world’s largest owner and lessor of intermodal containers
Brookfield Infrastructure intends to maintain Triton’s existing investment-grade capital structure, uphold high operating and customer service standards, and grow the business.
According to Sam Pollock, CEO of Brookfield Infrastructure, Triton is “an attractive business with highly contracted and stable cash flows, strong margins and a track record of value creation.”
Brian M. Sondey, CEO of Triton, stated that “the sale price provides significant value to our investors and represents a 35 per cent premium to yesterday’s closing share price.”
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Triton shareholders will receive $85 per share, comprising $68.50 in cash and $16.50 in Brookfield Infrastructure Corporation class A exchangeable shares.
The transaction, which is subject to customary closing conditions, including approval by Triton’s shareholders and receipt of required regulatory approvals, is expected to close in the fourth quarter of 2023.
Prior to closing, Triton intends to maintain its current quarterly dividend on the Triton common shares.
Upon the closing of the transaction, Triton’s common shares will be delisted from the New York Stock Exchange, but its Series A-E cumulative redeemable perpetual preference shares will remain outstanding.
Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Triton, while Brookfield Infrastructure engaged BofA Securities and Mizuho Securities USA LLC as joint financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisor.
Brookfield Infrastructure Corporation engaged Torys LLP to serve as legal counsel and was advised by MUFG.
Following the acquisition, ONE owns a 28.7 per cent share of Poseidon.
