Life Storage, which rejected an $11B takeover bid from Public Storage in February, has agreed to be acquired by Further House Storage for $12.4B in an all-stock transaction.
The deal creates an business chief with an estimated $47B in property, together with greater than 3,500 self-storage amenities encompassing greater than 264M SF.
Life Storage shareholders will obtain 0.8950 of an Further House share for each share they personal. When the deal closes, Further House and Life Storage traders will personal 65% and 35% of the merged firm, respectively, the businesses stated, in a press release.
Citigroup and JPMorgan Chase acted as monetary advisors to Further House within the transaction, with Citigroup taking the lead. Wells Fargo and Financial institution of America supplied recommendation to Life Storage.
The transaction will improve the dimensions of Salt Lake Metropolis-based Further House’s portfolio by greater than 50% by retailer rely with the addition of Life Storage’s 1,198 properties, together with 758 wholly-owned, 141 three way partnership, and 299 third-party managed shops.
In complete, the transaction provides over 88M SF to the portfolio. The mixed portfolio represents the biggest storage operation within the nation with over 3,500 areas, over 264 million sq. ft and serving over two million prospects.
The merged firms even have turn out to be the sixth-largest REIT in all sectors.
“We’re impressed with the administration staff’s strategic repositioning of the Life Storage portfolio over the past seven years, making a extremely diversified portfolio of high quality storage property in robust progress markets,” Further House CEO Joe Margolis stated, in a press release.
“The enterprise mixture is very synergistic, creating a fair stronger mixed firm that can drive long-term, outsized operational and exterior progress alternatives via scale efficiencies, increased retained money circulate, knowledge analytics, [and] third-party administration relationships, Margolis stated.
Joseph Saffire, CEO of Life Storage, stated in a press release that the corporate’s board “unanimously concluded that the pending transaction with Further House maximizes worth at present and is the transaction almost definitely to ship superior long-term returns for our shareholders.”
When it rejected Public Storage’s $11B hostile takeover bid in February, Life Storage stated the Public Storage bid considerably undervalued the corporate and discounted its prospects for additional progress.
The transaction is predicted to generate at least $100M in annual run-rate working synergies from G&A and property working expense financial savings in addition to improved property working income and tenant insurance coverage earnings, the businesses stated.
