Washington Prime Acquires Glimcher in $4.3B Deal

Washington Prime Group Inc., a spinoff of Simon Property Group, announced this week that it had completed the acquisition of Ohio-based REIT Glimcher Realty Trust. The $4.3 billion acquisition was approved by shareholders of Glimcher Realty Trust in a special meeting on Sunday. According to a report from The Columbus Dispatch, the combined real-estate investment trust will be called WP Glimcher and will own and manage about 120 U.S. malls that contain about 68 million square feet of leasable space. Under the terms of the agreement, Glimcher shareholders will receive, for each Glimcher share, $10.40 in cash and 0.1989 of a share in WP Glimcher common stock.

"We are very pleased to have completed our acquisition of Glimcher so quickly, which will allow us to begin taking advantage of the strengths of the combined company, including a broad and diverse group of strong cash flowing assets and a strong platform in Columbus as a foundation for growth," said Mark Ordan, Executive Chairman of WP Glimcher. "We are focused on reducing leverage, including through joint ventures and possible asset sales, maintaining our investment grade rating, strengthening our asset base through development and redevelopment opportunities, and strategically acquiring new properties in both enclosed and open air large format shopping centers that have a long term place in their markets."

Citi is serving as financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as legal advisor, to Washington Prime. Willkie Farr & Gallagher is serving as legal advisor to Washington Prime in connection with the sale of the two Glimcher properties to Simon. GreenOak Real Estate US and Morgan Stanley & Co. are serving as financial advisors, and Simpson Thacher & Bartlett is serving as legal advisor to Glimcher. WP Glimcher expects to issue fiscal year end 2014 earnings in late February, which will provide updated financial information and guidance for the newly combined company.

For more news and information visit Blumberg Capital Partners.

Washington Prime Buying Glimcher Realty for $4.3B

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.

For more news and information visit Blumberg Capital Partners.