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Trinity (TRN) Completes Sale of Highway Products Business

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Trinity Industries TRN has completed the previously announced sale of its highway products business to Rush Hour Intermediate II, LLC, an entity owned by Monomoy Capital Partners’ investment fund. The transaction was valued at $375 million in cash, subject to some adjustments at closing and other items.

The divestiture allows Trinity to focus on its core rail-related business and optimize capital structure to meet long-term goals. The company will report results of the highway products business, including gain on the sale, as part of its discontinued operations, from fourth-quarter 2021 onward.

Trinity is returning a significant portion of the sale proceeds to its shareholders. The company plans to repurchase $250 million of its penny par value common stock, representing 8.78 million shares, from ValueAct Capital Master Fund, L.P. The shares will be repurchased at a price of $28.49 per share.

Trinity Industries, Inc. Price

Trinity Industries, Inc. Price
Trinity Industries, Inc. Price

Trinity Industries, Inc. price | Trinity Industries, Inc. Quote


This share repurchase will not reduce the amount authorized under Trinity’s existing $250-million share repurchase program, approved by the board in September 2021.

Trinity also plans to enter into an accelerated Accelerated Share Repurchase ("ASR") program with JPMorgan Chase Bank, National Association to repurchase shares worth $125 million under the existing program. The ASR program commences on Jan 3, 2022 and runs through the third quarter of 2022.

Zacks Rank & Other Key Picks

Trinity carries a Zacks Rank #2 (Buy). Some other top-ranked stocks within the broader Transportation sector are as follows:

ArcBest Corporation ARCB flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate for earnings in each of the preceding four quarters, the average surprise being 27.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of ArcBest have surged more than 100% in a year.

Textainer Group Holdings TGH also sports a Zacks Rank #1. The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 33.1%.

Shares of Textainer Group have rallied more than 93% in a year’s time.


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Trinity Industries, Inc. (TRN) : Free Stock Analysis Report

ArcBest Corporation (ARCB) : Free Stock Analysis Report

Textainer Group Holdings Limited (TGH) : Free Stock Analysis Report

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