San Francisco-based warehouse giant Prologis will acquire smaller US rival DCT Industrial Trust in a stock and assumed-debt transaction worth US$8.4 billion.
DCT shareholders will receive 1.02 Prologis shares for every DCT share they own, Reuters reports, citing a statement by the companies on Sunday.
The transaction is expected to close in the third quarter.
The board of directors of both firms unanimously approved the transaction, which is expected to create near-term savings of about US$80 million.
The acquisition is expected to deepen Prologis’ presence in high-growth markets including Southern California, the San Francisco Bay Area, New York, New Jersey, Seattle and South Florida.
The deal is the largest for Prologis since it merged with AMB Property in 2011 in an US$8.7 billion transaction, Reuters noted.
Prologis owned or managed more than 3,200 properties worldwide as of end-December last year.
It leased facilities to about 5,000 customers, with the largest being Amazon and DHL, according to the report.
DCT, based in Denver, is a real-estate investment trust that is focused on industrial property. It is said to have some 71 million square feet in real-estate assets.
“DCT markets are 100 percent aligned with our markets,” Hamid Moghadam, CEO of Prologis, told Bloomberg in an interview.
“There’s perfect alignment between the portfolios. Think of DCT as a smaller, US-focused version of Prologis.”
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