Prologis to acquire DCT Industrial Trust for $8.4B
Prologis (PLD) and DCT Industrial Trust (DCT) announced that the two companies have entered into a definitive merger agreement by which Prologis will acquire DCT for $8.4B in a stock-for-stock transaction, including the assumption of debt.
The boards of directors of both companies have unanimously approved the transaction.
The transaction is anticipated to create substantial synergies, including near-term synergies of approximately $80M in corporate general and administrative cost savings, operating leverage, interest expense and lease adjustments, which are forecast to increase annual stabilized core funds from operations per share by 6c-8c.
A combination of revenue synergies and incremental development volume has the potential to generate $40M of additional annual revenue and development profit in the future.
Under the terms of the agreement, DCT shareholders will receive 1.02 Prologis shares for each DCT share they own. The transaction, which is currently expected to close in the third quarter of 2018, is subject to the approval of DCT stockholders and other customary closing conditions.
At closing, it is anticipated that Philip L. Hawkins will join the Prologis board of directors.
PLD closed at $66.58. DCT closed at $58.75.
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