CAI - Why CAI International Stock Is Soaring Higher Today
Shares of CAI International (NYSE: CAI) jumped 45% higher on Friday after the transportation equipment finance provider agreed to be acquired for $2.9 billion. Mitsubishi HC Capital has agreed to pay $56 in cash per share for CAI, a significant premium over the company's Thursday close.
CAI's primary business is buying large equipment, primarily intermodal shipping containers and railcars, which it leases to shipping and transportation customers. The global pandemic and a faster-than-expected recovery has created an imbalance in shipping channels, and made containers hard to come by, leading to more demand for CAI's products.
It's a business where scale matters, and CAI in joining forces with Mitsubishi would become a much larger player in the market. Terms of the deal value CAI's equity at $1.1 billion, with Mitsubishi taking on about $1.8 billion in CAI debt as well.
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Why CAI International Stock Is Soaring Higher Today