HAMILTON, Bermuda, Dec. 2, 2019 /PRNewswire/
-- Textainer Group Holdings Limited (NYSE: TGH)
("Textainer", "the Company", "we" and "our"), one of the world's
largest lessors of intermodal containers, today announced that the
Company's wholly-owned subsidiary, Textainer Limited, has entered
into an agreement to purchase Leased Assets Pool Company Limited
("LAPCO") for an equity value of approximately $66 million in
cash (constituting assets of $192 million less outstanding
debt of $126 million). The
Company intends to repay LAPCO's existing debt at the closing and
refinance the LAPCO containers which are managed by Textainer in
one or more of the Company's existing revolving credit
facilities. The transaction is subject to certain
closing conditions and is expected to close by year-end.
LAPCO owns a fleet of approximately 163,000 TEU (twenty-foot
equivalent units) of intermodal containers managed by Textainer and
approximately 3,000 TEU of containers managed by other container
lessors. LAPCO is an indirect subsidiary of Trencor
Limited, which owns approximately 48% of Textainer's common shares.
The percentage of Textainer's owned fleet will increase to
85.4% from 80.8% following the closing of the acquisition. In
connection with the transaction, Textainer engaged the services of
an independent valuation consultant to determine the fair market
value of LAPCO and the transaction's consideration was supported by
the valuation.
"We are very pleased with this acquisition which is in line with
our strategy of focusing on our core container leasing business and
bottom line. This acquisition of a large and
seasoned portfolio of containers we already manage allows us to
allocate Capex which will generate immediate contribution to our
bottom line while minimizing risks normally associated with
external fleet purchases," commented Olivier Ghesquiere, President and Chief
Executive Officer of Textainer Group Holdings Limited. "We
expect this transaction to be accretive to earnings and to
contribute to long-term growth in shareholder value," concluded Mr.
Ghesquiere.
About Textainer Group Holdings Limited
Textainer has operated since 1979 and is one of the world's
largest lessors of intermodal containers with more than 3.5 million
TEU in our owned and managed fleet. We lease containers to
approximately 250 customers, including all of the world's leading
international shipping lines, and other lessees. Our fleet consists
of standard dry freight, refrigerated intermodal containers, and
dry freight specials. We also lease tank containers through our
relationship with Trifleet Leasing and are a supplier of containers
to the U.S. Military. Textainer is one of the largest and most
reliable suppliers of new and used containers. In addition to
selling older containers from our lease fleet, we buy older
containers from our shipping line customers for trading and resale.
We sold an average of almost 140,000 containers per year for the
last five years to more than 1,500 customers making us one of the
largest sellers of used containers. Textainer operates via a
network of 14 offices and approximately 500 independent depots
worldwide.
Important Cautionary Information Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of U.S. securities laws. Forward-looking statements
include statements that are not statements of historical facts and
include, without limitation, statements regarding: the expected
timing and completion of the LAPCO purchase, the planned
refinancing of LAPCO's debt, the effective implementation of the
Company's strategy and the expected accretive benefits of the LAPCO
transaction and contribution to long-term growth. Readers are
cautioned that these forward-looking statements involve risks and
uncertainties, are only predictions and may differ materially from
actual future events or results. For a discussion of some of these
risks and uncertainties, see Item 3 "Key Information— Risk Factors"
in Textainer's Annual Report on Form 20-F filed with the Securities
and Exchange Commission on March 25,
2019.
Textainer's views, estimates, plans and outlook as described
within this document may change subsequent to the release of this
press release. Textainer is under no obligation to modify or update
any or all of the statements it has made herein despite any
subsequent changes Textainer may make in its views, estimates,
plans or outlook for the future.
Contact Information
Investor Relations
+1 415-658-8333
ir@textainer.com
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SOURCE Textainer Group Holdings Limited