Triton International Agrees to be Acquired by Brookfield Infrastructure

Triton International (TRTN), the world’s largest owner of shipping containers, is soaring to an all-time high after the company agreed to be acquired and taken private by Brookfield Infrastructure Corp. (BIPC) for $4.7 billion.

The deal, valued at $13.3 billion including debt, values Triton at $85 per share, a 34.9% premium over its closing price yesterday. Triton shareholders are to receive $68.50 in cash and $16.50 in BIPC shares.

Triton is "an attractive business with highly contracted and stable cash flows, strong margins, and a track record of value creation," said Brookfield CEO Sam Pollock. He added that the purchase of Triton gives Brookfield "a high going-in cash yield, strong downside protection, and a platform for growth in the transportation and logistics sector." Based in Toronto, Brookfield invests and manages a global network of infrastructure companies.

Deal to Close in Q4

Triton CEO Brian Sondey called the takeover "an excellent outcome for all of Triton’s stakeholders." The firms expect the transaction to be completed in the fourth quarter.  

Shares of Triton International are jumping 32% as of 2 p.m. New York time, while those of Brookfield Infrastructure are down 5%. Year-to-date, shares of the former are now positive for the year, up 21.3%, while those of the latter are 13.4% higher. Both are outperforming the S&P 500 Index's (SPY) 7.3% gain.