Brookfield Infrastructure to Buy Container Lessor Triton for $13.3B in Take-Private Deal

Triton International, the world’s largest owner and lessor of shipping containers, is being taken private by Brookfield Infrastructure Partners in a deal valuing the company at $13.3 billion.

Brookfield Infrastructure will pay $85 per share for Triton, a 35% premium to New York-based Triton’s closing price on Tuesday. Triton shareholders will receive $68.50 per share in cash, with the remaining $16.50 paid in partial shares of Brookfield stock.

The deal values Triton’s equity at $4.7 billion, with the remainder representing its net debt. The transaction is expected to close in the fourth quarter.

“We believe this transaction provides an excellent outcome for all of Triton’s stakeholders,” Triton CEO Brian Sondey said. “For our long-term shareholders, this transaction crystalizes a total shareholder return of approximately 700% since the 2016 merger of Triton and TAL International.”

Intermodal containers were a tough find throughout the pandemic as labor shortfalls left boxes stuck at ports and warehouses. But bottlenecks throughout the supply chain are easing, which has been reflected in Triton’s asset utilization metrics.

“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,” said Brookfield Infrastructure CEO Sam Pollock.

Triton capped 2022 with nearly $1.7 billion in leasing revenue and a little more than $700 million in adjusted net income. It used strong cash flow generation during the year to repurchase 14% of its outstanding shares, lower debt leverage and maintain a roughly 30% dividend payout ratio.

Private equity firms have been buying up providers with attractive cash flow qualities and asset portfolios that are covered by long-term leases.