Star Leasing Co., a trailer-leasing specialist backed by I Squared Capital, agreed to buy New Jersey-based rival Commercial Trailer Leasing Inc.
(Bloomberg) — Star Leasing Co., a trailer-leasing specialist backed by I Squared Capital, agreed to buy New Jersey-based rival Commercial Trailer Leasing Inc.
The transaction values the combined entity at $1.6 billion including debt, according to people with knowledge of the matter who requested anonymity to discuss confidential terms.
The deal expands Columbus, Ohio-based Star Leasing’s footprint to roughly 41 locations across 13 US states and follows its recent acquisition of North East Trailer Services.
“This is an important milestone in our plan to build the leading North American trailer lessor,” I Squared Chief Investment Officer Gautam Bhandari said in an emailed statement.
Driven by both acquisitions and organic growth, Star Leasing’s earnings before interest, taxes, depreciation and amortization, or Ebitda, have more than tripled since 2021 to more than $200 million, Bhandari said.
The merged company is expected to operate a fleet of roughly 55,000 trailers by the end of 2023, with customers including the United States Postal Service, United Parcel Service, FedEx Corp., Walmart Inc.
and the Coca-Cola Co.
Perella Weinberg Partners advised I Squared and Star Leasing, while Evercore Inc. advised Roseland, New Jersey-based CTL.
I Squared, an infrastructure-investment firm that counts Blue Owl Capital Inc.’s Dyal Capital Partners as a minority owner, has long focused on acquisitions as a way to build scale for its portfolio companies.
In recent months, I Squared-backed data center platform nLighten Deutschland GmbH has agreed to buy UK operator Proximity Data Centres Ltd. and France’s Euclyde Data Centers. Earlier this year, the firm made a separate trailer-leasing bet by purchasing Australia’s Rentco Transport Equipment Rentals.
Read More: I Squared Agrees to Acquire Australian Trailer Leaser Rentco
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