Schorsch's American Realty to acquire Cole Real Estate in $6.85B deal

Offer is 14% higher than Cole's closing price; deal approved by both companies' boards

Oct 23, 2013 @ 7:59 am

american realty capital, reits, real estate, cole real estate, nicholas schorsch
+ Zoom
Deal on: Cole CEO Marc Nemer (left) with ARCP chairman and chief executive Nicholas S. Schorsch. (PRNewsFoto/American Realty Capital Properties, Inc.)

American Realty Capital Properties has agreed to buy Cole Real Estate Investments for $6.85 billion to add a manager of retail, office and industrial properties to REIT mogul Nicholas Schorsch's growing stable of holdings.

American Realty Capital will pay 1.0929 common shares valued at $14.59 for each Cole share or $13.82 in cash, the companies said in a statement Wednesday. The offer is 14% higher than Cole's closing price yesterday. The merger has been approved by both companies' boards, according to the statement.

Take a closer look at Nick Schorsch's acquisition strategy

“Far more can be accomplished by these two great companies working together than either one could have hoped to achieve independently,” Mr. Schorsch, American Realty Capital chief executive, said in the statement. "This merger represents a new beginning for former competitors, and we look forward to uniting two of the industry's most talented organizations."

American Realty Capital said it had lined up $2.75 billion of financing and the deal is expected to be completed early next year.

In a statement, Mr. Schorsch further downplayed the rivalry between ARCP and Cole.

"We share the same disciplined investment philosophy and investment processes, which are focused on investment grade tenancy, long lease durations, a strong diversified tenant base, and a mix of property type and geography. . . By leveraging our successful track records, our complementary businesses and highly skilled professionals, we are confident that we will be well-positioned to achieve continued growth."

Watch Nick Schorsch: Separating the REITs from the chaff

Meanwhile, Cole's CEO, Marc Nemer, sought to assure brokers that Cole is in good hands. "Our valued broker-dealer and financial adviser relationships will continue to be served by the same distinguished professionals following completion of the merger," he said in a statement. "As I depart the organization, I do so with the conviction that ARCP will continue to execute on these principles under the umbrella of 'best practices' and generate outsize risk-adjusted returns for all of its stockholders."

(Bloomberg News)

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

State Street's Brie Williams: The story behind the 'Fearless Girl' statue

The idea started with the creation of a statue to coincide with International Women's Day, and the results surpassed expectations, according to Brie Williams, head of practice management at State Street Global Advisors.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Nationwide's 401(k) record-keeping fees are excessive, lawsuit claims

Plaintiffs claim practice of charging plans a percentage of assets is unreasonable.

Wealth management firms struggle with lower fees, fewer new clients

Advisers in North America earned less from clients last year and saw a decline in average fees, according to a new report by PriceMetrix.

These investors are allowed to put $500K into a Roth IRA at once

The HEART Act permits rolling all or part of life-insurance and combat-related-fatality payouts directly into the tax-free retirement plan, but few take advantage.

Labor's Alexander Acosta and SEC's Jay Clayton tell lawmakers they will work together on fiduciary rule

In separate appearances before Senate panels, the regulators stressed the cooperation that Republican legislators and opponents of the DOL fiduciary rule are demanding.

Interns will take on several roles at advisory firms this summer

College students are helping with client prep, firm visioning and long-term projects, among other duties.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print