Textainer set to become private in $7.4bn deal with Stonepeak

Textainer Group Holdings Limited, a global front-runner in intermodal container leasing, has confirmed its forthcoming acquisition by infrastructure investment powerhouse, Stonepeak. The purchase, priced at a whopping $2.1 billion for the common shares, values the enterprise at an estimated $7.4 billion.

Purchase Details

Shareholders of Textainer are set for a cash bonanza, receiving $50.00 per share. This evaluation showcases a hefty 46% premium over the firm’s October 20, 2023 closing share price, marking a significant surge in its valuation. Notably, for shareholders on the Johannesburg Stock Exchange, payments will be made in South African Rand, adhering to the set exchange rate in the merger protocol.

Leadership Remarks

Olivier Ghesquiere, CEO at Textainer, expressed, “This transaction has been made possible by our strong company foundation reaffirmed over the last several years…” Hyman Shwiel, Textainer’s Board Chairman, also highlighted the company’s illustrious journey since its inception in 1979 and its public trading commencement in 2007. James Wyper of Stonepeak recognized Textainer’s pivotal role in global trade and praised its commitment to customers.

Future Projections

Projected to close its doors in Q1 2024, the deal is still awaiting the green light from Textainer shareholders and obligatory regulatory consents. However, Stonepeak’s acquisition doesn’t hinge on any financing conditions.

Textainer has granted a 30-day “go-shop” period, ending on November 22, 2023, providing an opportunity for the firm to seek potentially more lucrative acquisition offers. Upon deal completion, Olivier Ghesquiere will maintain his leadership role as Textainer’s CEO, with the company’s headquarters remaining in Hamilton, Bermuda.

Post-Acquisition Changes

In the aftermath of the merger, the company foresees the discontinuation of Textainer common shares listings on both the New York Stock Exchange and the Johannesburg Stock Exchange.

Deal Architects

BofA Securities and Deutsche Bank are the chief financial advisors for Textainer and Stonepeak, respectively. O’Melveny & Myers LLP and Simpson Thacher & Bartlett LLP are overseeing the legal facets of the deal for the two entities, respectively.