Public Storage, Inc. (NYSE: PSA) announced today the completion of the previously announced acquisition of Shurgard Storage Centers, Inc. (NYSE:SHU) in a transaction with a total value of approximately $5.5 billion. The transaction will further expand the size of the nation’s largest self-storage company with an ownership interest in over 2,100 facilities in 38 states and seven European nations.
All of Shurgard’s shares of common stock have been converted into the right to receive 0.82 shares of Public Storage common stock, Public Storage assumed approximately $1.9 billion of Shurgard debt and $136 million of Shurgard preferred stock has been redeemed. The shareholders of Public Storage and Shurgard approved the transaction at meetings held earlier in the day.
« We are pleased to have successfully completed the transaction combining Public Storage and Shurgard and look forward to the rapid integration of our two companies, » said Ronald L. Havner, Jr., President and Chief Executive Officer of Public Storage.
Public Storage will retain its headquarters in Glendale, California. Gary E. Pruitt, formerly an independent member of Shurgard’s Board of Directors, will join the Public Storage Board of Directors.
Shurgard common stock will be delisted from the New York Stock Exchange effective at the close of business today.
In connection with the transaction, Goldman Sachs served as exclusive financial advisor to Public Storage, and Wachtell, Lipton, Rosen & Katz and Preston Gates & Ellis LLP served as its legal counsel. Citigroup Corporate and Investment Banking and Banc of America Securities LLC served as financial advisors to Shurgard, and Willkie Farr & Gallagher LLP and Perkins Coie LLP served as its legal counsel.