Merger launches intermodal container lessor giant

Triton Container International Limited and TAL International Group have announced they are to merge to create the world’s largest lessor of intermodal freight containers, with a combined container fleet of nearly five million twenty-foot equivalent units (TEU) and revenue earning assets of $8.7 billion.

Under the terms of the transaction agreement, Triton and TAL International will combine under a newly-formed holding company, Triton International Limited, which will be domiciled in Bermuda and is expected to be listed on the New York Stock Exchange.

Triton was founded in 1980 and is currently owned by Warburg Pincus and Vestar Capital Partners, along with other private investors, including members of Triton management. Triton operates a container fleet of 2.4 million TEU, services its customers through 19 subsidiary offices in 13 countries and is domiciled in Bermuda.

TAL International was founded in 1963 and has been publicly listed since 2005. It operates a container fleet of 2.4 million TEU, services its customers through 17 offices in 11 countries and is domiciled in Delaware.

The two companies say the merger will create the world’s largest and most efficient intermodal container leasing company, with a container fleet of 4.8 million TEU, resulting in industry cost leadership and an enhanced container supply capability.

The regional and product line strengths of Triton and TAL International are highly complementary. The combined company will offer its customer base a broad range of container types and will maintain close customer relationships across all major geographic locations.

The combined company expects to make annual savings of $40 million per year by combining systems and rationalising global infrastructure. The cost savings are expected to be fully implemented by the end of 2016.

Ed Schneider, Triton co-founder and chairman of the board, stated: “This transaction will create a company with deep industry knowledge, enhanced operating and systems capabilities and expanded fleet size. Both Triton and TAL International have well-earned reputations for competence and reliability with our customers, suppliers and capital providers.”

“We are proud of what Triton has accomplished over the last 35 years and we believe that joining forces with TAL International is a next logical step in our evolution. We look forward to bringing together our similar cultures of dependability, high quality customer service and teamwork.”

Brian Sondey, president and CEO, TAL International, stated: “This is a transformational transaction. The new company’s enhanced capabilities, larger scale and improved cost competitiveness will better position it in the current soft operating environment and provide valuable operating leverage when the market recovers.”

“Both Triton and TAL International have delivered industry-leading returns over the last ten years, and we are very excited to work together to continue this tradition of success as a larger, stronger, more profitable company,” he added.