© Reuters. Brookfield Infrastructure Partners (BIP) takes logistics giant Triton (TRTN) private in $13.3 billion deal
By Vlad Shipkov
Triton International Limited (NYSE:), the world’s largest owner and lessor of intermodal containers and an important provider of logistics infrastructure, has been acquired by Brookfield Infrastructure Partners LP (NYSE:) in a $4.7 billion cash and stock deal, the two companies today announced the positioning of The Triton project is valued at approximately $13.3 billion.
Brookfield is paying a total consideration of $85.00 for each common share of Triton, consisting of $68.50 in cash and $16.50 in BIPC Class A Exchangeable (NYSE:) shares, reflecting a 35% premium to Triton’s closing price the day before the announcement.
In conclusion, the total equity investment in BIP will be approximately $1 billion, including BIPC shares. The stock portion is subject to a collar, which ensures that Triton shareholders will receive the number of BIPC shares equal to $16.50 per Triton share. With the collar on, between 18.4 million and 21.3 million BIPC shares are expected to be issued to Triton shareholders.
“We believe this transaction provides an excellent outcome for all Triton stakeholders,” commented Triton CEO Brian M. Sondey, while his counterpart at Brookfield Sam Pollock said: “This transaction provides Brookfield Infrastructure with high cash yield and strong downside protection, And a platform for growth in the transport and logistics sector.”
The transaction is currently expected to close in the fourth quarter of 2023, subject to usual closing conditions, including approval by Triton shareholders and receipt of required regulatory approvals. Tritton added that it intends to maintain its current quarterly earnings before the close.
Triton shares are trading around $82, or 30% higher, post-announcement, while BIP is down 2% before the market.