US-based Triton Container International Limited and TAL International Group, Inc. entered a merger agreement to create what is described as the world’s largest leasing company of intermodal freight containers with a combined container fleet of nearly five million twenty-foot equivalent units (TEU) and revenue earning assets of USD 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, to be based in Bermuda and listed on the New York Stock Exchange.
“This transaction will create a company with deep industry knowledge, enhanced operating and systems capabilities and expanded fleet size,” Ed Schneider, Co-Founder and Chairman of the Board, Triton, said.
“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,” Brian Sondey, President and Chief Executive Officer, TAL International, said.
Triton shareholders will own 55% of the equity of the combined company and TAL International shareholders will own 45%.
The combined company expects to realize USD 40 million per year and the cost savings are expected to be fully implemented by the end of 2016.
Triton operates a container fleet of 2.4 million TEU, has 19 subsidiary offices in 13 countries and is based in Bermuda. TAL International operates a container fleet of 2.4 million TEU, with 17 offices in 11 countries and is based in Delaware.