By Vlad Schepkov
Triton International Limited (NYSE:TRTN), the world's largest owner and lessor of intermodal containers and a critical provider of logistics infrastructure, is being taken private by Brookfield Infrastructure Partners LP (NYSE:BIP) in a $4.7 billion-cash-and-stock deal, placing Triton's enterprise value at around $13.3B, the two companies announced today.
Brookfield is paying a total consideration of $85.00 per Triton common share, consisting of $68.50 in cash and $16.50 in BIPC class A exchangeable shares (NYSE:BIPC), and reflecting a 35% premium to Triton's closing price on the day before the announcement.
At closing, BIP's total equity investment will be around $1B, inclusive of the BIPC shares. The stock portion is subject to a collar, ensuring Triton shareholders receive the number of BIPC shares equal to $16.50 in value for every Triton Share. With the collar, it is estimated between 18.4 million and 21.3M BIPC Shares will be issued to Triton shareholders.
"We believe this transaction provides an excellent outcome for all of Triton's stakeholders," commented Triton CEO Brian M. Sondey, while his Brookfield counterpart Sam Pollock said: "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."
The deal is currently projected to close in Q4 2023, subject to customary closing conditions, including approval by Triton's shareholders and receipt of required regulatory approvals. Triton added it intends to maintain its current quarterly dividend, prior to closing.
Shares of Triton are trading around $82 or 30% higher following the announcement, while BIP is down 2% premarket.