SEVEN MILLION TEU

Brookfield Infrastructure Partners has made an offer for container rental company Triton International, reflecting an enterprise value of no less than $13.3 billion. The American investment company is offering $85 per share for Triton, which is listed on the New York Stock Exchange, 35% above its closing price on Tuesday, April 11. That values ​​the company’s equity at $4.7 billion and brings its market capitalization to $13.3 billion.

With a fleet of approximately seven million teu of containers, Bermuda-based Triton is by far the world’s largest container rental company. In comparison, the fleet of MSC, the world’s largest container shipping company, has a transport capacity of just under five million teu.

Incidentally, shipping companies need much more TEU capacity than their ships can transport because a large proportion of the containers are on their way in the hinterland or are in depots. To build in sufficient flexibility, they therefore hire in part of their container needs.

Depots

All major shipping companies are customers of Triton, which has 400 depots worldwide for collecting and returning rental containers. Triton claims to be the number 1 supplier to four of the five largest container shipping companies. In addition to containers, the company also rents out generators, or gen sets, for reefer containers and chassis.

The current company was created in 2016 from Triton and TAL International. Shareholders who have since held their own have seen their cumulative returns rise to 700% thanks to the Brookfield offer. On the other hand, the offer values ​​the Triton fleet at approximately $1,900 per TEU.

Brookfield believes the acquisition will enable Triton to continue to grow and increase profitability. “This transaction provides Brookfield Infrastructure with a high cash return, protection against price declines, and a platform for growth in the transportation and logistics industry,” CEO Sam Pollock said in a statement.