Brookfield Infrastructure to Buy Triton in $4.7 Billion Deal
[Stay on top of transportation news: .]
agreed to buy , 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, , which is a 35% premium to Triton’s closing price April 11. The acquisition, which needs the approval of Triton shareholders and regulators, is expected to be completed in the fourth quarter.
32% to $83.06 as of midday in New York on April 12, while were little changed.
“Triton is an attractive business with highly contracted and stable cash flows, strong margins and a track record of value creation,” said in a statement. The transaction brings “strong downside protection and a platform for growth in the transportation and logistics sector,” he said.
ʴDZdz
Including debt, the deal is worth $13.3 billion.
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 the 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.
Want more news? Listen to today's daily briefing belowor go here for more info:
