CAI International, Inc
CAI NYSE

CAI
CAI International, Inc NYSE
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History of CAI

Important events

Jun 212021

Acquisition news sends CAI soaring

CAI International popped off the chain on news of its $2.9 billion acquisition by Mitsubishi HC Capital, sending share prices soaring just under 50% to make it TradingView’s top gainer for June 18.

Shares of CAI International rallied a fierce 47% on Friday after the company agreed to be acquired by Mitsubishi HC Capital. The deal will consist of $101 million in preferred stock and $986 million of common stock equity value, with a total enterprise value of $2.9 billion.The agreement sees Mitsubishi paying $56 per share for the transportation company, which represents a hefty premium on CAI’s Thursday closing price of $38.14.

CAI’s business focuses primarily on buying large equipment like shipping containers and railcards and then renting that equipment to shipping and transportation clients. The COVID pandemic meant a shift in consumer spending from services to goods, and led to a container imbalance and shipping delays – not great for companies scrambling for containers (or consumers waiting on the other end), but a win for CAI International, which rents out this suddenly hard-to-come-by equipment.

Executing on that strategy put CAI in position to partner with MHC, a strong, quality, global financial organization. Going forward, the combination of CAI and MHC will allow MHC to leverage CAI’s global marketing and operational expertise, and along with MHC’s existing container investments will provide enhanced value to MHC’s container leasing customers, suppliers, employees, and other stakeholders

remarked President and CEO of CAI, Timothy Page.

There are no obvious obstacles to the deal, which bumped CAI’s stock to a 52-week high.