Shares of Triton International Ltd (NYSE: TRTN) are up more than 30% today after Brookfield Infrastructure Partners L.P. (NYSE: BIP) said it will buy the leasing company for about $4.7 billion.
Details of the announced acquisition
The said agreement values each share of Triton International at $85. Shareholders will receive $68.50 of that in cash and the remaining in BIPC.
With this acquisition, Brookfield hopes to expand its footprint in transportation and logistics. In the press release, its CEO Sam Pollock said:
Triton is an attractive business with highly contracted and stable cash flows, strong margins and a track record of value creation.
In its latest reported quarter, Triton International Ltd had $416 million in revenue. Versus the start of the year, Triton stock is now up nearly 40%.
Triton shareholders are yet to vote on the deal
The announced transaction is expected to complete in the fourth quarter of the current year subject to shareholders’ approval and meeting other customary closing conditions. Pollock added:
Triton shareholders will benefit from owning a globally diversified portfolio of infrastructure assets within a platform that has a proven history of generating long-term value for its shareholders.
Triton will no longer be listed on the New York Stock Exchange once the cash and stock deal that’s won unanimous approval from its board of directors is closed. The Purchase-headquartered firm has picked Goldman Sachs as its exclusive financial advisor for this deal.
Brookfield Infrastructure Corp shares are in the red on Wednesday.
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