Brookfield Infrastructure to buy Triton in $4.7 billion deal

Brookfield Infrastructure Partners LP agreed to buy Triton International Ltd., the world’s largest owner of shipping containers, for $4.7 billion to expand in transportation logistics supporting the global supply chain. 

Toronto-based Brookfield will pay $85 a share, including $68.50 in cash, the companies said early Wednesday, which is a 35% premium to Triton’s closing price Tuesday. The acquisition, which needs the approval of Triton shareholders and regulators, is expected to be completed in the fourth quarter. Including debt, the deal is worth $13.3 billion.

“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. “This transaction provides Brookfield Infrastructure with a high going-in cash yield, strong downside protection and a platform for growth in the transportation and logistics sector.”

Global supply-chain pressures are just starting to ease after around three years of disruption from the Covid-19 pandemic, followed by the war in Ukraine. Supply-chain delays have disrupted manufacturing and caused food shortages, adding to inflation.  

In addition to owning and leasing intermodal containers, Triton also provides transportation-logistics infrastructure. The firm, which is based in Bermuda and has its shares listed on the New York Stock Exchange, owns a fleet of more than 7 million container units.

At the completion of the Triton purchase, Brookfield Infrastructure’s equity investment is expected to be about $1 billion, including shares of the Canadian company.