Extra Space To Acquire Life Storage In All-stock Deal

(RTTNews) - Extra Space Storage Inc. (EXR) Monday announced a definitive merger agreement to acquire Life Storage Inc. through an all-stock transaction. As per the agreement, 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 share price close on March 31, 2023.

At closing, Extra Space and Life Storage shareholders are expected to own approximately 65 percent and 35 percent of the combined company, respectively. The transaction is currently expected to close in the second half of 2023.

The combined company is expected to have a pro forma equity market capitalization of approximately $36 billion and a total enterprise value of approximately $47 billion.

Extra Space CEO Joe Margolis said, "The business combination is highly synergistic, creating an even stronger combined company that will drive long-term, outsized operational and external growth opportunities."

Extra Space will retain its name and continue to trade on the NYSE under the ticker 'EXR'. Kenneth W. Woolley will remain Chairman of the Board and Joseph D. Margolis will remain as CEO and Director.