Textainer to Go Private in a $2.1 Billion Deal with Stonepeak

Textainer Group Holdings (NYSE:TGH), a leading shipping-container leasing company, has announced that it will be acquired by alternative investment firm Stonepeak in a $2.1 billion deal. Under the agreement, Stonepeak will pay $50 per share in cash to Textainer’s shareholders, representing a 46.4% premium to TGH’s closing price on October 20, 2023, the last full trading day prior to the transaction announcement. The transaction represents an enterprise value of about $7.4 billion.

Textainer is one of the world’s largest lessors of intermodal containers, with a fleet of about 3.7 million containers and 200 customers. The company operates in 14 offices and around 400 depots worldwide. Textainer’s revenue for the first half of 2023 was $1.2 billion, up 67% from the same period last year.

Textainer shareholders to receive $50 per share in cash
Textainer shareholders to receive $50 per share in cash

Stonepeak to take Textainer private and delist from NYSE and JSE

The deal has been unanimously approved by the Textainer Board of Directors and is expected to close in the first quarter of 2024, subject to customary closing conditions and regulatory approvals. The definitive merger agreement includes a 30-day “go-shop” period expiring on November 22, 2023, which permits Textainer and its financial advisor to continue to actively solicit and consider alternative acquisition proposals.

Shortly after completion of the transaction, Textainer common shares will no longer be listed on the New York Stock Exchange and Johannesburg Stock Exchange. Prior to closing, Textainer intends to maintain its current quarterly dividend on both the Textainer common and preference shares.

Textainer will continue to be led by its President and CEO, Olivier Ghesquiere, and will continue to be headquartered in Hamilton, Bermuda. “After 16 years of operating in the public equity markets, we are very excited to start this new chapter as a private company,” said Hyman Shwiel, chairman of the board of Textainer.

Stonepeak sees growth opportunities in container leasing market

Stonepeak is an alternative investment firm specializing in infrastructure and real assets with approximately $57.1 billion of assets under management. The firm has investments in sectors such as transportation, energy, utilities, digital infrastructure, and water.

Stonepeak said it sees significant growth opportunities in the container leasing market, driven by strong demand for containerized trade and limited supply of containers. “We are thrilled to partner with Olivier and the Textainer team as they continue to execute on their strategy of providing best-in-class service to their global customer base,” said Luke Taylor, partner at Stonepeak.

Textainer’s CEO Ghesquiere also expressed his confidence in the future of the company under Stonepeak’s ownership. “We believe that Stonepeak is an ideal partner for Textainer given their deep sector expertise, long-term investment horizon and shared vision for our company,” he said.

Leave a Reply

Your email address will not be published. Required fields are marked *