Prologis Inc. on Monday said the much-anticipated acquisition of Duke Realty is a done deal.
The all-stock transaction, which Prologis said is valued at approximately $23 billion and was approved by San Francisco-based Prologis’ and Indianapolis-based Duke’s shareholders, “expands Prologis’ presence in key U.S. markets.
Both companies have prominent holdings in New Jersey.
“In addition to the Day One accretion and avenues for further earnings growth, this acquisition gives us an even stronger ability to support our customers and their growth,” Prologis co-founder, Chairman and CEO Hamid Moghadam stated. “We’re gaining high-quality properties and more than 500 new customers in key markets. These new customers will be able to tap into our Essentials platform, which delivers end-to-end solutions to address critical supply chain challenges and contributes to their broader sustainability efforts.”
Prologis has a strong history of successfully integrating new assets into the business and creating value for customers through its scaled platform. The acquisition of this highly compatible portfolio from Duke Realty includes:
- 142 million square feet of fully operational logistics buildings (approximately 480) in 19 major U.S. markets, including New Jersey, Southern California, South Florida, Chicago, Dallas and Atlanta;
- 7 million square feet of buildings under development;
- Approximately 17 million square feet of developable land;
- Over 500 new customers.
Prologis also announced that Duke Realty Chairman and CEO James Connor has been appointed to the Prologis board of directors, effective immediately upon the closing of the acquisition.
With the acquisition, Prologis is expanding its presence in major regions in the U.S. and adding Savannah, Georgia, the fourth-largest U.S. gateway for container imports. With an expanded U.S. presence in key logistics hubs, Prologis will be even better poised to meet customer needs.
Prologis said it will be actively onboarding Duke Realty customers it is gaining, including introducing them to the Prologis Essentials platform, a proprietary suite of solutions and services designed to solve the challenges modern logistics facilities experience.
Goldman Sachs Group Inc. and Citigroup served as financial advisers and Wachtell, Lipton, Rosen & Katz served as legal adviser to Prologis. Morgan Stanley & Co. LLC served as the lead financial adviser and Hogan Lovells US LLP served as legal adviser to Duke Realty. J.P. Morgan Securities LLC and Alston & Bird LLP also served as financial and legal advisers, respectively, to Duke Realty.