Stonepeak to Buy Textainer for $2.1B in Cash

New York-based infrastructure investor Stonepeak Partners LP, with over $57 billion under management, will take over one of the largest shipping container lessors Textainer Group for $2.1 billion in cash.

Textainer shareholders will receive $50 per share, representing an enterprise value of approximately $7.4 billion including debt, and the redemption of Textainer’s Series A and B preference shares. The price represents a premium of approximately 46% over Textainer’s closing share price last Friday.

The agreement includes a 30-day “go-shop” period that expires on November 22, which permits Textainer and its financial advisor to continue to actively solicit and consider alternative acquisition proposals.

Textainer will continue to be led by President and CEO, Olivier Ghesquiere, and will remain headquartered in Hamilton, Bermuda.

“Textainer forms a critical link in global trade. The business is underpinned by high-quality assets and contracted cash flows that provide substantial downside protection and resilient through-cycle performance,” said James Wyper, senior managing director at Stonepeak.

Th deal will see Textainer follow competitor container leasing firms Triton and CAI International retreat from public listings into the arms of infrastructure funds. Triton was bought by Brookfield for $13.3 billion this year, while CAI was acquired by Mitsubishi HC Capital in 2021 for $2.9 billion.

The transaction is expected to close in the first quarter of 2024.

Textainer has a primary listing on the New York Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.

BofA Securities is serving as financial advisor to Textainer. O’Melveny & Myers LLP is acting as lead legal counsel. Deutsche Bank is acting as financial advisor to Stonepeak. Simpson Thacher & Bartlett LLP is acting as lead legal counsel.