Extra Space Storage to Buy Life Storage in All-Stock Deal with EV of $47B
Extra Space Storage Inc. will acquire its smaller competitor Life Storage Inc. In an all-stock transaction. The combined company is expected to have a pro forma equity market cap of approximately $36 billion and a total enterprise value of approximately $47 billion, including debt.
Life Storage shareholders will receive 0.8950 of an Extra Space share for each Life Storage share they own. The total consideration is approximately $145.82 per share based on Extra Space’s close on March 31, 2023.
Extra Space and Life Storage shareholders are expected to own approximately 65% and 35% of the combined company, respectively. The transaction is expected to close in the second half of the year.
The combined portfolio, a real estate investment trust (REIT), represents the largest storage operation in the country with over 3,500 locations, over 264 million square feet and serving over two million customers, according to the company.
“The business combination is highly synergistic, creating an even stronger combined company that will drive long-term, outsized operational and external growth opportunities,” said Extra Space CEO Joe Margolis.
Kenneth W. Woolley will remain Chairman of the Board and Margolis will remain as CEO and Director.
Life Storage had turned down an $11 billion all-stock takeover bid from bigger rival Public Storage in Februry.
Pictured: Extra Space Storage in Salt Lake City, UT.