Blackstone to Acquire Retail Opportunity Investments in a $4 Billion Cash Deal

Blackstone Real Estate (BX) entered a merger agreement on November 6, 2024, to take Retail Opportunity Investments Corp (ROIC) private in an all-cash deal valued at $4 billion, including debt.

Deal Structure:

Under the terms of the agreement, Blackstone Real Estate Partners X will acquire all outstanding common shares of ROIC for $17.50 per share in cash, representing a 5.49% premium from the stock’s last close.

Company Profile:

Retail Opportunity Investments Corp. is a real estate company that owns and manages grocery-anchored shopping centers on the West Coast, with 93 properties covering 10.5 million square feet as of September 30, 2024.

Blackstone is a global investment firm that manages assets in real estate, private equity, credit, and hedge funds. Its real estate division, started in 1991, is the world’s largest owner of commercial real estate, with $325 billion in assets in areas like logistics, data centers, housing, and offices. Blackstone Real Estate also provides real estate loans and financing solutions worldwide.

Earlier this year, Blackstone also acquired Apartment Income REIT Corp. for $10 billion. That deal was closed in 81 days.

Deal Details and Timeline:

In June, reports surfaced about Blackstone holding talks with ROIC. Bain Capital was also interested in acquiring the real estate investment trust (REIT). The stock had been trading at $13.04 before Reuters reported on the deal.

The deal is expected to close in the first quarter of 2025.

“This transaction reflects Blackstone’s conviction in necessity-based, grocery-anchored shopping centers in densely populated geographies,” said Jacob Werner, Co-Head of Americas Acquisitions at Blackstone Real Estate. “The sector is experiencing accelerating fundamentals, benefiting from nearly a decade of virtually no new construction, while demand for brick-and-mortar grocery stores, restaurants, fitness and other lifestyle retailers remains healthy.”

Blackstone Inc. will be acquiring Retail Opportunity Investments Corp at 6.23 times its annual sales and 17.42 times its EBITDA.

Deal Metrics:

To explore further details about this M&A transaction, please visit the Deal Metrics page:

Deal Metrics for the acquisition of Retail Opportunity Investments Corp (ROIC) by Blackstone Inc. (BX)

The Deal Metrics page for each merger or acquisition includes:

• A spread history chart of the merger from announcement through eventual completion or failure.
• Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A history of deal updates.
• And a whole lot more.

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Editor’s Note: Baranjot Kaur contributed to this article