Brookfield and CPP Investments agree to buy LXP Industrial Trust at $61.20 a share, a $5.2bn deal

$61.20 a share, in cash. Brookfield Asset Management (NYSE: BAM) and Canada Pension Plan Investment Board have agreed to buy LXP Industrial Trust (NYSE: LXP), the two said on July 20 in a statement filed with the Securities and Exchange Commission. The all-cash offer values the warehouse landlord at about $5.2bn including net debt and preferred equity. LXP's board approved it unanimously.

The price is a 12.3 percent premium to LXP's 30-day volume-weighted average through July 17, and 19.8 percent above the 90-day figure. LXP owns roughly 53 million square feet of warehouse and logistics space across 108 properties, concentrated in the Sunbelt and the Midwest. The buyers will take the company private, and its shares will stop trading on the New York Stock Exchange once the deal closes. Closing is expected in the fourth quarter, subject to a shareholder vote and the usual conditions. There is no financing condition.

One clause keeps the auction open. The agreement carries a 40-day go-shop period, running to 11:59pm New York time on August 28, during which LXP may solicit and weigh rival offers and, if a better one appears, walk away on payment of a termination fee. LXP has also agreed to suspend its common dividend until the deal closes or is terminated. The 6.50 percent Series C preferred shares stay outstanding through the merger.