Realty Income finds Spirit for $9.3bn takeover
US investor Realty Income is buying Spirit Realty Capital in a $9.3bn (£9.7bn) takeover.
The all-stock deal will create a group with a $63bn enterprise value that Realty said will “expand its runway” for growth.
Spirit shareholders will receive 0.762 new Realty Income shares for each Spirit share they own, resulting in Realty Income and Spirit shareholders owning 87% and 13% respectively of the combined company.
US investor Realty Income is buying Spirit Realty Capital in a $9.3bn (£9.7bn) takeover.
The all-stock deal will create a group with a $63bn enterprise value that Realty said will “expand its runway” for growth.
Spirit shareholders will receive 0.762 new Realty Income shares for each Spirit share they own, resulting in Realty Income and Spirit shareholders owning 87% and 13% respectively of the combined company.
If shareholders approve the deal, it is expected to complete in the first quarter of 2024.
The enlarged company’s biggest industry will be convenience stores, at 10.2% of annualised contractual rent.
“The merger with Spirit is yet another example of how our size, scale and unique platform value continue to create substantial value for our shareholders,” said Sumit Roy, president and chief executive at Realty Income. “We expect that this transaction will create immediate and meaningful earnings accretion, while enhancing the diversification and depth of our high-quality real estate portfolio.”
Jackson Hsieh, president and chief executive at Spirit, said: “Since the board appointed me CEO in 2017, our leadership team and dedicated associates have effectuated numerous accomplishments, including improved tenant quality and asset diversification, implementation of advanced analytical tools and processes, and an excellent balance sheet with well-laddered maturities and below-market fixed debt costs. This transaction is the culmination of these accomplishments.”
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