San Francisco-based Prologis Inc. will buy Pennsylvania-based Liberty Property Trust in a deal valued at $12.6 billion, including the assumption of debt.
Both boards of Liberty (NYSE: LPT) and Prologis (NYSE: PLD) have unanimously agreed to the all-stock deal. Liberty shareholders will receive 0.675 of a Prologis share for each Liberty share they own. The deal, which represents a 21 percent premium on Liberty's closing price Oct. 25, is expected to close in the first quarter of 2020.
The companies said in a statement that Prologis’ acquisition of Liberty will strengthen Prologis’ presence in the logistics hubs of the Lehigh Valley, Chicago, Houston, Central Pennsylvania, New Jersey and Southern California. It involves a portfolio that Liberty has accumulated totaling 107 million square feet, 5.1 million square feet in projects under development and 1,684 acres of land for future development that could add another 19.7 million square feet.
As part of the deal, Prologis will assume jettisoning $700 million in office assets Liberty had begun to unload from its portfolio and $2.8 billion of properties deemed “non-strategic logistics properties.”
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