Prologis buys warehouse rival Liberty in $12.6B deal
Warehouse giant Prologis has agreed to acquire rival industrial real-estate business Liberty Property Trust in a $12.6 billion deal.
Prologis said Liberty shareholders would receive 0.675 times a Prologis share for each unit they hold, about $61 a share. The deal is expected to close in the first quarter of 2020.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The move is expected to help expand Prologis' presence in the U.S. as the ecommerce boom continues, adding to its holdings in Pennsylvania's Lehigh Valley, Chicago, Houston, New Jersey and Southern California.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
PLD | PROLOGIS INC. | 118.28 | -0.56 | -0.47% |
LPT | NO DATA AVAILABLE | - | - | - |
"Liberty’s logistics assets are highly complementary to our U.S. portfolio and this acquisition increases our holdings and growth potential in several key markets," said Prologis Chairman and Chief Executive Officer Hamid Moghadam. "The strategic fit between the portfolios allows us to capture immediate cost and long-term revenue synergies."
Prologis plans to sell about $3.5 billion worth of assets, including $2.8 billion of "non-strategic" logistics properties and $700 million of office properties, according to a statement.
CLICK HERE TO READ MORE ON FOX BUSINESS
Prologis customers, according to its website, include Amazon.com, Walmart and FedEx Corp.