PS Business Parks (PSB) announces $7.6 billion buyout by Blackstone.

PS Business Parks, Inc. (PSB) announced today that it has agreed to be acquired by affiliates of Blackstone for $187.50/share in cash, resulting in a total transaction value of approximately $7.6 billion.  Parent company Public Storage (PSA), which owns approximately 41% of PSB's fully diluted common equity, has agreed to vote its shares in favor of the transaction.  Subject to a 30-day "go-shop" clause in the merger agreement, the transaction is expected to close in the third quarter of 2022.  According to PSB, "The purchase price represents a premium of approximately 15% to the volume weighted average share price over the last 60 days."

In a separate announcement, Public Storage said that it expects to receive approximately $2.7 billion of cash proceeds in the buyout and recognize a $2.3 billion taxable gain.  PSA said that it expects to distribute the gain to shareholders.

PS Business Parks specializes in the ownership of 'flex' style office/industrial properties in major urban markets. As of December 31, 2021, the company's portfolio included 97 business parks with 27 million square feet of GLA.

04/25/2022