TAL International, Triton Container to Merge
November 09 2015 - 7:17PM
Dow Jones News
By Josh Beckerman
TAL International Group Inc. (TAL), which leases intermodal
freight containers, has agreed to merge with privately owned Triton
Container International Ltd. in a stock swap.
TAL, which trades on the New York Stock Exchange, will combine
with Triton under a newly formed holding company that is expected
to be listed on the NYSE.
Triton shareholders will own 55% of the combined company's
equity, with TAL stockholders owning 45%. Triton's owners include
private-equity firms Warburg Pincus and Vestar Capital
Partners.
The deal is projected to add about 30% to earnings per share for
TAL's existing shareholders when cost savings are fully
realized.
TAL Chief Executive Brian Sondey said in a statement that "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."
On Oct. 28, TAL said its third-quarter profit fell 31%, while
leasing revenue rose 2.6% to $154.4 million. The company said its
utilization rate was strong, but pricing was pressured by factors
including lower steel prices.
For the 12 months ended Sept. 30, TAL's leasing revenue was $608
million, while Triton's was $716 million.
In after-hours trading, TAL shares were down 1.8% to $17.03.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
November 09, 2015 19:02 ET (00:02 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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