Infrastructure fund Stonepeak has announced its agreement to acquire shipping container lessor Textainer Group in a deal worth $2.1 billion. The deal was made at $50 per share in cash, representing a significant 46% premium to Textainer’s closing price on Friday.
The acquisition, with a total value of approximately $7.4 billion, including Textainer’s debt, is expected to be completed in the first quarter of next year. Importantly, the deal is not subject to a financing condition, ensuring a smooth transition.
During the first 30 days after the announcement, Textainer will have a “go-shop” period, allowing the company to consider alternative acquisition proposals. This provides an opportunity for other interested parties to make competing offers.
Textainer’s current President and CEO, Olivier Ghesquiere, will continue to lead the company, which will be headquartered in Hamilton, Bermuda. The company also plans to maintain its current quarterly dividend on both common and preference shares, ensuring stability for its shareholders.
In addition, Textainer announced that its Series A and B cumulative redeemable perpetual preference shares will be called for redemption within 120 days following the closing of the deal. This decision will help streamline operations and optimize the company’s financial structure.
Financial advisory services for Textainer are being provided by BofA Securities, with legal counsel being led by O’Melveny & Myers LLP. The news of the acquisition was initially reported by the Wall Street Journal.
This acquisition represents an exciting development for both Stonepeak and Textainer. Stonepeak’s investment in the shipping container industry highlights the sector’s potential for growth and profitability. Meanwhile, Textainer can leverage Stonepeak’s expertise and financial resources to further expand its operations and enhance its market position.
Overall, this strategic acquisition is expected to create a strong partnership that will drive the growth and success of Textainer in the global shipping container market.
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