Ongoing consolidation in the household goods industry continues as Public Storage has agreed to acquire National Storage Affiliates in a US$5.63 billion all-stock deal, creating a self-storage company with a combined market capitalization of about $57 billion.
The Wall Street Journal reported that the deal will add more than 1,000 properties, 69 million rentable square feet, and 550,000 self-storage units, including the high-growth Sun Belt region, that spans roughly states from Virginia and Florida to California. The deal is valued at US$10.5 billion including debt.
The companies said they expect to achieve annual run-rate synergies of US$110 million to US$130 million within three to four years from revenue improvement, operating efficiencies, tenant reinsurance uplift and general and administrative savings.