New York-based alternative investment firm, Stonepeak Partners LP, with $57.1 billion under management, has announced plans to acquire Textainer Group Holdings Limited (NYSE: NYSE:TGH), a global lessor of intermodal containers based in Hamilton, Bermuda. The deal, disclosed on Sunday, October 22, 2023, values Textainer at $2.1 billion, offering shareholders a premium of 46.41% from the closing price on Friday, October 20.
The transaction includes a cash payout of $50 per share for common shareholders and the redemption of Textainer's Series A and B preference shares. This announcement resulted in a significant rise in Textainer's share price by 39.7%. The enterprise value of the acquisition is estimated at $7.4 billion.
Following the acquisition, Textainer will be delisted from the NYSE and Johannesburg Stock Exchange after maintaining a public listing for 16 years. This decision was confirmed by Chairman Hyman Shwiel. Despite the change in ownership, operations will continue under the leadership of current CEO Olivier Ghesquiere.
Textainer has an international presence with approximately 200 clients across 14 offices and 400 depots worldwide. Ghesquiere anticipates that the partnership with Stonepeak will strengthen customer relationships and fuel capital expenditure growth through enhanced investment capital and industry expertise.
The deal has been approved by TGH's board and is expected to close in the first quarter of 2024 pending shareholder and regulatory approvals. A 30-day "go-shop" period has also been included for Textainer to seek alternative bids. Prior to the announcement of this deal, TGH held a "Hold" consensus rating on TipRanks with an average price target of $45 and recorded a stock gain of 12.1% this year.
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