Equity Commonwealth to acquire Monmouth Real Estate for $3.4b

Equity Commonwealth and Monmouth Real Estate Investment Corp. have entered into a definitive merger agreement by which Equity Commonwealth will acquire Monmouth in an all-stock transaction valued at approximately $3.4 billion, including the assumption of debt. The combined company is expected to have a pro forma equity market capitalization of approximately $5.5 billion.

“The transaction provides Equity Commonwealth with a high-quality, net-leased industrial business with stable cash flows while preserving EQC’s balance sheet capacity for future acquisitions,” said Sam Zell, chairman of the board of Equity Commonwealth.

“Monmouth provides an attractive and scalable platform,” said David Helfand, president, CEO and trustee of Equity Commonwealth. “With significant cash and balance sheet capacity, we have the ability to grow the platform and create long-term value for shareholders.”

Monmouth’s portfolio is comprised of 120 properties totaling 24.5