Apollo, Interpool to Buy Xtra for $1.9 Billion

Interpool Inc. and Leon Black’s Apollo Management agreed to buy Xtra Corp., which leases trailers and freight containers, for $1.9 billion in stock and assumed debt.

Apollo and Princeton, N.J.-based Interpool, which also leases cargo containers, will pay $65 a share in cash, or about $976 million, for 90% of Boston-based Xtra.

News of the deal boosted Xtra shares up $14.94 to close at $61 on the New York Stock Exchange. Interpool rose $1.06 to close at $15.75, also on the NYSE.

The acquisition will give Interpool a 14% share of the marine-container market, now dominated by Transamerica Corp. and a General Electric Co. joint venture.

Earlier this week, Black said he will take a 25% stake in the planned combination of Renters Choice Inc. and Thorn’s U.S. rent-to-own business, the two largest chains of rent-to-own appliance and furniture centers. Renter’s Choice on Wednesday agreed to buy Thorn Americas Inc. for $900 million.

Under the agreement with Xtra, Apollo would own 65% of the new company. Interpool would own 22.5% and the rest would be held by Xtra shareholders, who have the option of exchanging each Xtra share for $65 in cash or one share in the new company.

Black, whose firm specializes in buying real estate and depressed companies, also has holdings that include Samsonite Corp. and Paragon Health Network Inc.