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Shareholders Shove Monmouth Into $4 Billion Buyout

Monmouth shareholders still need to approve the deal which is expected to close in the first half of 2022.
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Shares of Monmouth Real Estate Investment MNR were falling slightly Monday afternoon after the company announced that it agreed to be acquired by Industrial Logistics Properties Trust HD for $4 billion, or $21 per share. 

Monmouth agreed to be acquired for about $600 million more than Sam Zell's Equity Commonwealth offered. 

"The substantial interest in our company is a testament to our success building a best-in-class net-leased industrial real estate portfolio that is well positioned to benefit from the accelerated adoption of e-commerce," said CEO Michael Landy.

The deal is expected to close in the first half of 2022 subject to approval by Monmouth's shareholders. 

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Monmouth shareholders previously rejected Zell's bid of $19.58 per share, or about $3.4 billion, because the offer was in stock and not cash.

Monmouth shareholders will receive the previously announced dividend of 18 cents per share payable Dec. 15. If the deal is not consummated by March 31, Monmouth shareholders will be entitled to receive the 18 cent dividend for that quarter also. 

Monmouth's stock will no longer be listed on the New York Stock Exchange once the deal is complete.

Monmouth owns 126 industrial properties in 32 states with tenants that include Amazon AMZN, FedEx FDX and Home Depot HD. Industrial Logistics owns about 290 locations, the majority of which are located in Hawaii. 

Monmouth shares were falling 0.4% to $21.03 Monday afternoon.