Textainer Group Holdings (NYSE:TGH), a leading shipping-container leasing company, has agreed to be acquired by alternative investment firm Stonepeak in a $2.1 billion deal. As per the deal, Stonepeak will pay $50 per share in cash to Textainer’s shareholders. The amount represents a premium of 46.4% to TGH’s closing price of $34.15 on October 20. The deal pegs Textainer’s enterprise value at $7.4 billion.
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More on the Textainer-Stonepeak Deal
The deal is approved by TGH’s board of directors and is expected to close in the first quarter of 2024, subject to shareholder approval and regulatory clearance. Moreover, the agreement includes a 30-day “go-shop” period during which Textainer can find alternative acquisition bids. Notably, the company’s shares will stop trading on the New York Stock Exchange (NYSE) and the Johannesburg Stock Exchange on the deal’s closure.
Further, TGH’s current president and CEO Olivier Ghesquiere will continue to lead the privately-held company. Textainer is one of the largest intermodal container lessors, headquartered in Hamilton, Bermuda. It has 200 customers, 14 offices, and 400 depots situated worldwide. Meanwhile, Stonepeak focuses on infrastructure and real assets sectors and has about $57.1 billion in assets under management.
It is important to note that the deal was made public on Sunday, October 22, and hence, Textainer shares will reflect investors’ reaction in pre-market trading and regular trading hours today.
Is Textainer a Good Stock to Buy?
Currently, Textainer’s future is largely dependent on Stonepeak’s deal taking shape. On TipRanks, TGH has a Hold consensus rating based on one Hold rating received during the last three months. The average Textainer Group Holdings price target of $45 implies 31.8% upside potential from current levels. TGH stock has gained 12.1% so far this year, before the deal’s announcement.
