Regency Facilities and Urstadt Biddle Properties, each of which grocery-anchored neighborhood and group facilities, have entered right into a definitive settlement during which Regency will purchase Urstadt Biddle in an all-stock transaction, valued at $1.4 billion, together with the belief of debt and most well-liked inventory. The mixed firm is predicted to have a professional forma fairness market capitalization of roughly $11 billion and whole enterprise worth of roughly $16 billion.
The mixed portfolio may have 481 properties encompassing greater than 56 million sq. toes of gross leasable space.
The deal will improve Regency’s footprint of grocery-anchored procuring facilities and provides it some geographic diversification. It’ll additionally ship round $9 million of annual value financial savings, the corporate mentioned.
The transaction is predicted to shut late within the third quarter or early within the fourth quarter of 2023, topic to the receipt of approval of the shareholders and different customary closing circumstances.
Below the phrases of the Settlement, Urstadt Biddle’s Class A typical and its widespread stockholders will obtain 0.347 of a newly-issued Regency share for every share they personal, for $20.40 per share based mostly on Regency’s closing share worth on Could 17, 2023. Upon closing, Regency and Urstadt Biddle shareholders will personal roughly 93% and seven% of the mixed firm, respectively.
The respective Boards of Administrators of each Regency and Urstadt Biddle have every accepted the transaction.
