Regency Centers and Urstadt Biddle Properties, both of which grocery-anchored neighborhood and community centers, have entered into a definitive agreement in which Regency will acquire Urstadt Biddle in an all-stock transaction, valued at $1.4 billion, including the assumption of debt and preferred stock. The combined company is expected to have a pro forma equity market capitalization of approximately $11 billion and total enterprise value of approximately $16 billion.
The combined portfolio will have 481 properties encompassing more than 56 million square feet of gross leasable area.
The deal will increase Regency’s footprint of grocery-anchored shopping centers and give it some geographic diversification. It will also deliver around $9 million of annual cost savings, the company said.
The transaction is expected to close late in the third quarter or early in the fourth quarter of 2023, subject to the receipt of approval of the shareholders and other customary closing conditions.
Under the terms of the Agreement, Urstadt Biddle’s Class A common and its common stockholders will receive 0.347 of a newly-issued Regency share for each share they own, for $20.40 per share based on Regency’s closing share price on May 17, 2023. Upon closing, Regency and Urstadt Biddle shareholders will own approximately 93% and 7% of the combined company, respectively.
The respective Boards of Directors of both Regency and Urstadt Biddle have each approved the transaction.
