Washington Prime Group Inc., a Bethesda, MD-based retail REIT, announced this week that it would acquire Glimcher Realty Trust for $4.3 billion in stock and cash, including the assumption of debt, a transaction valued at $14.20 per Glimcher common share. According to an ABC News report, after the deal closes, which is expected to happen in the first quarter of 2015, the company will change its name to WP Glimcher. As part of the deal, Glimcher will sell two shopping centers to Simon Property Group Inc. for $1.09 billion. The two shopping centers being sold are Jersey Gardens in Elizabeth, New Jersey, and University Park Village in Fort Worth, Texas.
Mark Ordan, Chief Executive Officer of Washington Prime Group, said of the deal, "We went public just three months ago, expecting to utilize our strong platform, relationship with Simon, cash flow and investment grade balance sheet to grow. This transaction with Glimcher checks every box, very early in our company's trajectory."
"We believe there is immediate benefit to our shareholders and our associates when we consider the growth profile of the joint company," added Michael Glimcher, Chairman of the Board and CEO of Glimcher Realty Trust. "Together, we gain a competitive advantage with a premier balance sheet, a larger pool of assets, and a proven platform to deliver results."
Washington Prime Group owns and manages 96 shopping centers totaling more than 50 million square feet. Columbus, Ohio-based Glimcher Realty is a developer of retail properties, including mixed use, open-air and enclosed regional malls as well as outlet centers. The combined company will be comprised of about 68 million square feet of gross leasable area and will have a combined portfolio of 119 properties.
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