Join our crew and become one of the 105,176 members that receive our newsletter.

shipping containers

Photo: MAGNIFIER / Shutterstock.com

Container Owner Triton to Go Private in $4.7 Billion Buyout

Bloomberg
Total Views: 3236
April 12, 2023

By Layan Odeh and Derek Decloet (Bloomberg) —

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

Toronto-based Brookfield will pay $85 a share, including $68.50 in cash, the companies said early Wednesday, which is a 35% premium to Triton’s closing price Tuesday. The acquisition, which needs the approval of Triton shareholders and regulators, is expected to be completed in the fourth quarter. 

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

“Triton is an attractive business with highly contracted and stable cash flows, strong margins and a track record of value creation,” Brookfield Infrastructure Chief Executive Officer Sam Pollock said in a statement. The transaction brings “strong downside protection and a platform for growth in the transportation and logistics sector,” he said. 

Including debt, the deal is worth $13.3 billion.

‘Attractive’ Yield

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

Global supply chains were disrupted for years by the Covid-19 pandemic, though pressures have eased lately. Shipping delays, plus the war in Ukraine, have disrupted manufacturing and caused food shortages, adding to inflation.  

Triton’s shares had doubled in the past three years before Wednesday’s deal announcement. The firm, which is based in Bermuda and listed on the New York Stock Exchange, has a fleet of more than 7 million 20-foot-equivalent container units.

After closing, Brookfield Infrastructure’s equity investment is expected to be about $1 billion, including shares of the Canadian company.

(Adds share price and analyst comments beginning in the third paragraph)

© 2023 Bloomberg L.P.

Monthly Insights from the Helm

Dive into a sea of information with our meticulously curated weekly “Dispatch” email. It’s more than just a newsletter; it’s your personal maritime briefing.

Sign Up
Back to Main
polygon icon polygon icon

Why Join gCaptain Club?

Be Informed: Stay updated with the latest maritime news and trends.

Connect: Network with a community of maritime professionals and enthusiasts.

Gain Insights: Receive exclusive content and personal perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 105,176 members delivered daily straight to your inbox.

gCaptain’s full coverage of the maritime shipping industry, including containerships, tankers, dry bulk, LNG, breakbulk and more.