Japan’s Mitsubishi HC Capital (MHC) has snapped up San Francisco-based container leasing company CAI International in a $1.1bn deal.
The deal comprises of $104m of preferred stock and $986m of common stock equity value, and has an enterprise value of $2.9bn, the New York-listed CAI International said.
MHC has offered $56 per share in cash, marking a 46.8% premium over CAI International’s last closing price on June 17. The transaction has been unanimously approved and is currently expected to close in late Q3 or early Q4 of 2021.
After the closing of the transaction, MHC expects to retain CAI’s existing management team and employees. CAI’s shares will no longer be listed on the New York Stock Exchange and its headquarters will remain in San Francisco, said the newly-promoted CEO and president, Timothy Page.
In 2014, Mitsubishi UFJ Lease entered into the container leasing market with the acquisition of Beacon Intermodal Leasing (BIL) and, since then, it has been looking to expand its presence in the field. In September last year, the company reached an agreement with its smaller rival, Hitachi Capital, to create MHC.