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Storage Giants Unite: $5.63B Deal Creates Mega-Company
16 Mar
Summary
- Public Storage is acquiring National Storage Affiliates for $5.63 billion.
- The deal will expand Public Storage's footprint by over 1,000 properties.
- National Storage Affiliates shareholders will receive 0.14 shares of Public Storage stock.
Public Storage has announced a $5.63 billion all-stock acquisition of National Storage Affiliates. This major consolidation is expected to create a storage-unit powerhouse with a combined market capitalization reaching $57 billion. The acquisition is a key move for Public Storage to broaden its operational reach.
The deal will significantly enhance Public Storage's footprint across the United States and Puerto Rico. It involves adding more than 1,000 properties, encompassing 69 million rentable square feet and 550,000 individual units. These new assets are spread across 37 states and Puerto Rico, indicating a vast geographical expansion.
Shareholders of National Storage Affiliates are set to receive 0.14 shares of Public Storage common stock for each share they currently hold. This exchange is valued at $41.68 per share, based on Public Storage's closing stock price. The transaction, including assumed debt, amounts to a total enterprise value of $10.5 billion.
Both companies' boards have unanimously approved the terms of the merger. The transaction is anticipated to finalize in the third quarter, pending the necessary approval from National Storage Affiliates shareholders and the satisfaction of other standard closing conditions.
