Public Storage announced a $10.5 billion deal to acquire National Storage Affiliates after recently moving its headquarters to Frisco.
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One month after announcing it will move its corporate headquarters to Frisco from California, Public Storage said March 16 it will buy National Storage Affiliates Trust in an all-stock deal valued at $10.5 billion.
The deal will provide holders of NSA common shares and operating partnership units with a total consideration of $41.68 per share based on Public Storage’s closing share price on March 13. The combined company is expected to have a combined market capitalization of roughly $57 billion and total enterprise value of about $77 billion.
After the deal’s expected closing in the third quarter, Public Storage will wholly own 488 of NSA’s properties. Public Storage and limited partners in NSA’s operating partnership will also form a new joint venture consisting of 313 properties with an estimated valuation of $3.3 billion.
Following the deal’s close, Public Storage will have almost 4,600 properties, including more than 3,600 that are wholly owned, with a total 328 million square feet. Its number of properties will increase 30% while square footage will rise 27%, according to an investor presentation. About 38% of the total footprint will be located in the Sun Belt that stretches across the southern United States.