This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Deal: American Realty Capital Finally Clinches Cole deal

Stocks in this article: ARCP COLE

NEW YORK (TheStreet) ¿¿ Just months after being rebuffed by its target, American Realty Capital Properties (ARCP - Get Report) on Wednesday announced it has an agreement in place to acquire Cole Real Estate Investments (COLE) in a deal valued at $11.2 billion.

Terms of the deal call for New York based ARCP, an acquisitive commercial property REIT, to pay either 1.0929 shares or $13.82 in cash for each share of Cole. Based on ARCP¿s Oct. 22 closing price, the stock offer is worth $14.59 per share, a premium of 13.8% to Cole¿s Tuesday close.

Cole, of Phoenix, is a buyer and manager of retail, office and industrial properties. ARCP said the combination would create the world¿s largest net lease REIT with an enterprise value of $21.5 billion, 3,732 properties and 102 million square feet in 49 states and Puerto Rico. The company also expects to extract $70 million in synergies in the first year of combined ownership.

¿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,¿ ARCP chairman and CEO Nicholas S. Schorsch said in a statement. ¿Far more can be accomplished by these two great companies working together than either one could have hoped to achieve independently.¿

The deal ends a long pursuit of Cole by ARCP, which in March went public with a $9.7 billion offer to acquire what was then known as Cole Credit Property Trust III Inc. The target, which at the time was not publicly traded, rejected the offer in favor of its plan to merge with Cole Holdings, its external adviser, and seek a public listing soon after. Cole went public on June 20, opening at $11.50 per share.

The Cole deal continues a busy year for ARCP. The REIT in July announced plans to buy American Realty Capital Trust IV, a nontraded real estate investment trust managed by ARCP executives, for $3.1 billion, and in May said it would buy CapLease for $2.2 billion and two portfolios of retail properties from GE Capital for a combined $807 million.

A Barclays team of Steve Wolitzer, Rick Landgarten, Schecky Schechner and Lisa E. Beeson joined with RCS Capital to provide financial advice to ARCP, with Proskauer Rose serving as legal counsel.

Goldman Sachs, Wachtell, Lipton, Rosen & Katz, Venable and Morris, Manning and Martin are advising Cole.

A Sullivan & Cromwell team led by partners Alison Ressler and Benjamin Weber and including Ann Chen, Matthew Friestedt, Andrew Mason, Henrik Patel, Georg Kraus-Vilmar, Gideon Rov, Jane Wang, Henrik Patel, Jeanette Braun and Guy Inbar are acting as special counsel to Christopher Cole and certain other executives in connection with the transaction.

--Written by Lou Whiteman in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs