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Container Lessor Textainer to be Acquired by Stonepeak in $7.4B Deal

containers
Textainer, one of the largest container lessors, will be acquired in a sign of long-term confidence in the sector (iStock photo)

Published Oct 23, 2023 1:26 PM by The Maritime Executive

Alternative investment firm Stonepeak plans to further expand its investments in shipping-related businesses, announcing a deal to acquire Textainer Group in a deal valuing one of the largest container lessors at $7.4 billion. The deal comes at a time when the container shipping industry is under pressure from declining volumes and freight rates but is seen as a signal underlying the long-term prospects for the sector.

Stonepeak has agreed to pay a premium of approximately 46 percent, $50 a share, over Friday’s closing price for Textainer’s shares. The total purchase will cost approximately $2.1 billion and will see Textainer become a privately held company. The agreement places an enterprise value on Textainer of approximately $7.4 billion, while Stonepeak has also included a 30-day “go-shop” period in which Textainer can actively solicit and consider alternative acquisition proposals.

“This transaction validates the success of Textainer’s strategy and the positive momentum in the business,” said Hyman Shwiel, Chairman of the Board of Textainer. “With the support of an experienced partner like Stonepeak, we are well positioned to continue delivering high-quality equipment and best-in-class service to customers worldwide.”

Started in 1979, Textainer became a publicly traded company in 2008. Currently, they own and manage a total of more than 4 million TEU and are also one of the largest sellers of used containers. They report more than 200 customers, including all the world’s leading international shipping lines.

Textainer like all segments of the container shipping industry has come under pressure in 2023 as volumes and rates dropped in the business. The company’s net income was off by more than a third in the second quarter of 2023 versus the year ago, but it still produced more than $51 million for the quarter. Stonepeak cites Textainer’s high-quality assets and contracted cash flows that provide downside protection among the strengths of the business.

For Stonepeak, which has more than $57 billion in assets under management, mostly in infrastructure and real estate investments, the acquisition of Textainer would further expand its involvement in businesses related to the shipping industry. Stonepeak completed the acquisition of Teekay LNG Partners, one of the largest independent owners and operators of LNG carriers, in January 2022, and rebranding the company Seapeak, which in turn acquired Evergas from Jaccar Holdings at the end of 2022. Stonepeak also acquired Australia’s GeelongPort earlier this year and last week joined with Blue Wolf Capital Partners announcing plans to acquire Canada’s LOGISTEC Corporation. Based in Montreal, the company provides specialized bulk, break-bulk, and container cargo handling services to the marine community and industrial companies in 60 ports and 90 terminals located in North America.

The acquisition of Textainer is expected to close in the first quarter of 2024. The company will continue to be led by its current president and CEO, Olivier Ghesquiere, and will continue to be headquartered in Hamilton, Bermuda.