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Plymouth Industrial REIT has announced its decision to go private through an acquisition by Makarora Management and Ares Management, valued at approximately USD 2.1 billion including debt. The Boston-based REIT's shareholders will receive USD 22 per share. The move follows an earlier unsolicited offer from Sixth Street Partners, which had proposed USD 24.10 per share. The deal includes a go-shop period allowing Plymouth to seek alternative proposals.
Plymouth Industrial REIT confirmed earlier this week that it would be taken private by Makarora Management and Ares Management in a transaction valued at around USD 2.1 billion, including debt. This decision came after the company had received a buyout proposal from Sixth Street Partners earlier this year. Advertisement
Based in Boston, Massachusetts, Plymouth stated that its shareholders would receive USD 22 per share under the current agreement. The company's shares declined by over 2% in after-hours trading following the announcement.
Earlier this year, Plymouth had received an unsolicited and non-binding proposal from Sixth Street Partners offering USD 24.10 per share in cash. As of August, Sixth Street held roughly 9.99% of Plymouth's outstanding common stock.
Makarora Management's founder and Chief Investment Officer Chad Pike mentioned that Plymouth's portfolio of cost-efficient industrial assets across the Midwest and East Coast was strategically placed to benefit from robust industrial demand in key population hubs.
Plymouth also announced the initiation of a 30-day "go-shop" period, set to end late next month, during which it and its financial advisors would be permitted to actively seek and assess alternative acquisition proposals from other potential buyers.
The company added that if the transaction did not proceed, it would be required to pay a termination fee of USD 40.1 million, while it would be entitled to receive USD 70.2 million should the deal be terminated by the other parties.
The proposed deal is anticipated to close in early 2026, pending shareholder approval and other regulatory clearances. KeyBanc Capital Markets and J.P. Morgan Securities acted as financial advisors for Plymouth, while Morrison & Foerster and Alston & Bird provided legal counsel.
With Makarora Management and Ares Management leading the acquisition, Plymouth Industrial REIT's decision marks a significant shift in its strategic direction. The inclusion of a go-shop period demonstrates openness to competing offers, while the transaction itself underscores strong investor interest in industrial real estate assets. The deal's successful completion will depend on regulatory reviews and shareholder consent, with closure anticipated in early 2026.
Source - Reuters
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