Brookfield acquiring container lessor Triton for $4.7bn

The move sees NYSE-listed Brookfield expanding in transportation logistics supporting the global supply chain.

“Triton is an attractive business with highly contracted and stable cash flows, strong margins and a track record of value creation,” Brookfield Infrastructure Chief Executive Officer Sam Pollock said in a statement. The transaction brings “strong downside protection and a platform for growth in the transportation and logistics sector,” he said.

The acquisition, which needs the approval of Triton shareholders and regulators, is expected to be completed in the fourth quarter of this year.

Triton Containers has a fleet of more than 7m 20-foot-equivalent container units and a global network of 21 offices and 3 independent agencies in 16 countries. Triton offers access to its containers through approximately 400 third-party owned container depot facilities across 89 countries.

"We believe this transaction provides an excellent outcome for all of Triton's stakeholders," commented Brian M. Sondey, Chief Executive Officer of Triton. "The sale price provides significant value to our investors and represents a 35% premium to yesterday's closing share price."

The deal comes as the near-term prospects for the container industry are in question as shipping volumes dropped precipitously on many of the major routes around the world. Many carriers are expected to report steep declines from their record profits of a year ago. Two months ago, Triton predicted a subdued 2023 outlook characterised by a gradual trend down in container utilisation driven by global economic and geopolitical challenges.

The company reported a 55% increase in net income or nearly $697m in 2022 on a 9.5% increase in total lease revenues or a total of nearly $1.7bn for its leases.

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