The boards of directors for Public Storage Inc. and Shurgard Storage Centers Inc. approved a definitive merger agreement under which Public Storage will acquire Shurgard for approximately $5 billion, according to Reuters. Public Storage will issue approximately 38.4 million shares of stock, assume about $1.8 million in debt, and redeem $136 million of Shurgard preferred stock. The transaction is slated to close by the end of the second quarter 2006.
Under the terms of the merger, each share of Shurgard common stock will be exchanged for .82 shares of Public Storage common stock. At closing, Shurgard shareholders will own approximately 23 percent of the outstanding shares of the merged company.
An analyst/investor conference call and webcast was held today to discuss the transaction. A replay of the event can be accessed through March 13 by calling 800.642.1687 or at www.publicstorage.com under "Corporate Information, Investor Relations." Both forms of replay use conference ID number 6282604.