This Exceptional Dividend Stock Makes a Bold Move to Get Bigger and Better
Extra Space Storage (NYSE: EXR) unveiled a bold move this week. It agreed to acquire rival self-storage REIT Life Storage (NYSE: LSI) in an all-stock deal. The transaction will create the largest player in the self-storage industry, vaulting past Public Storage (NYSE: PSA), which had been trying to buy Life Storage.
The transaction will transform Extra Space into one of the biggest REITs. It should also enable the company to continue growing its exceptional dividend.
Extra Space Storage has agreed to acquire Life Storage in an all-stock transaction valuing the company at about $145.82 per share. That's above the roughly $129 per share proposal from rival Public Storage, which Life Storage rejected because it said the offer substantially undervalued the company. The companies hope to close the deal in the second half, assuming shareholder approval and that Public Storage doesn't bump up its bid.
Source Fool.com
