Brookfield acquires container rental company Triton for $4.7 billion

Toronto-based Brookfield Infrastructure Partners is buying container leasing company Triton International for $4.7bn.

With this move, NYSE-listed Brookfield is expanding into transportation logistics in support of the global supply chain.

“Triton is an attractive company with highly contractual and stable cash flows, strong margins and a track record of creating value,” Brookfield Infrastructure chief executive officer Sam Pollock said in a statement. The transaction brings “strong loss protection and a platform for growth in the transport and logistics sector,” he said.

The acquisition, which is subject to Triton shareholder and regulatory approvals, is expected to close in the fourth quarter of this year.

Triton Containers has a fleet of more than 7 million 20ft container units and a global network of 21 offices and 3 independent agencies in 16 countries. Triton provides access to its containers through approximately 400 third-party container depots in 89 countries.

“We believe this transaction represents an excellent outcome for all of Triton’s stakeholders,” commented Brian M. Sondey, Triton’s Chief Executive Officer. “The sale price offers significant value to our investors and represents a premium of 35% over the stock’s closing price yesterday.”

The deal comes as the short-term prospects for the container industry are in question as shipping volumes have plummeted on many of the world’s key routes. Many airlines are expected to report sharp declines from their record profits set a year ago. Two months ago, Triton forecast a muted outlook for 2023, characterized by a gradual decline in container utilization fueled by global economic and geopolitical challenges.

The company reported a 55% increase in net income for 2022, or nearly $697 million, with a 9.5% increase in total rental income, or nearly $1.7 billion total for its leases.

Source: News Network