Japan’s Mitsubishi HC Capital has purchased leading container leasing company CAI International in a $1.1bn deal.

The investment is an attempt to build on Mitsubishi HC’s acquisition of Beacon International Leasing (BIL) in 2014, which brought it into the container leasing market.

Mitsubishi HC said: “Through the transaction, the company will establish high profitability and stability in its marine container leasing business, and aims to build a sustainable asset portfolio.

“In addition, the company will maximise synergies; leverage compatibility with its various existing businesses in the logistic sector, including marine containers, rail cars, vessels and automobiles; and embrace both expertise and capital base to strengthen its whole business.”

Mitsubishi HC is paying $56 per share for a total consideration of $1.1bn. The deal awaits final CAI shareholder approval.

Stable income

The transaction is expected to conclude in 2022 and CAI will become a wholly owned subsidiary of Mitsubishi HC.

San Francisco-headquartered CAI reported net assets of $2.6bn, net sales of $294m and a net profit of $72m for the year to the end of December 2020.

Mitsubishi HC said the takeover is part of its strategy to secure a stable income structure. It said shipping companies are increasingly showing a preference to lease rather than own containers. It added that demand for containers is increasing in line with trade volumes and there is currently a shortage of containers.

Mitsubishi HC will emerge as the leading container leasing company. CAI has a container fleet of 1.7m teu and BIL 1.5m teu.

CAI chairman David Remington said the move is in the “best interests of shareholders”.