April 13, 2023 | Real Estate | North America | Ended

Life Storage / Extra Space Storage: Deal Insights

Extra Space Storage, the second largest operator of self-storage properties in the US, entered into a definitive agreement on 3-Apr-23 to acquire its smaller rival, Life Storage, through an all-stock merger. The companies operate as REITs, and under the terms of the agreement, Life Storage shareholders will receive 0.8950 Extra Space shares for each Life Storage owned, valuing the target at $12.7bn and representing a consideration of $145.82 per share based on Extra Space’s closing share price on 31-Mar-23. Both boards of directors have unanimously approved the merger. Upon closing, Extra Space and Life Storage shareholders will own 65% and 35% of the combined company, respectively. The merger consideration implies an 11.2% one-day takeover premium and a 31.9% premium over Life Storage’s undisturbed price on 3-Feb-23, the last trading day prior to Life Storage disclosing that it had received an unsolicited all-stock offer worth $129.31 per share from its larger peer and the largest self-storage operator in the US, Public Storage (PSA US) ...

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