Brookfield acquires container leasing company Triton for $4.7 billion

A containers of Triton (Photo: Triton)

 
Toronto-based Brookfield Infrastructure Partners is buying container leasing company Triton International for $4.7 billion. The acquisition, which requires approval from Triton's shareholders and regulators, is expected to be completed in the third quarter of this year. This move shows that Brookfield is expanding logistics operations to support 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 CEO Sam Pollock said in a statement. The transaction provides “strong downside protection and a platform for growth in the transportation and logistics sector,” he said.

Triton International has a container capacity of more than 7 million TEUs (20-foot container equivalent unit) and a global network of 21 offices and 3 independent agents in 16 countries. Triton provides access to its containers through approximately 400 third-party-owned container yards across 89 countries.

“We believe this transaction provides an excellent outcome for all of Triton's stakeholders,” commented Brian M. Sondey, CEO 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 short-term outlook for the container shipping industry is in doubt as shipping volumes drop rapidly on many of the world's major routes. Many carriers are expected to report a sharp decline from their record profits a year ago. Two months ago, Triton predicted a dismal market for 2023 characterized by a gradual decline in container usage due to global economic and geopolitical challenges.

The company reported a 55% increase in net profit or nearly $697 million in 2022 thanks to a 9.5% increase in total rental revenue or a total of nearly $1.7 billion for leases.

Read more:

• CIMC sees significant decline in container demand in First-Half 2023
• Shanghai Containerized Freight Index slightly increases in six months

Source: Phaata.com (According to SeatradeMaritime)

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