Extra Space Storage Inc. completed the acquisition of Life Storage, Inc. from State Street Corporation, BlackRock, Inc., The Vanguard Group, Inc., Wellington Management Company LLP and others.
The transaction is subject to the approval of Extra Space and Life Storage shareholders, listing on the New York Stock Exchange, the Form S-4 to be filed by Extra Space to register the offer and sale of shares of Extra Space Common Stock to be issued in the Company Merger becoming effective, Extra Space shall have received a written tax opinion of Phillips Lytle, Latham & Watkins LLP and Hogan Lovells US LLP, the receipt of certain legal opinions by us and Extra Space, the absence of any temporary restraining order, injunction or other legal order, and no law being enacted, which would have the effect of making illegal or otherwise prohibiting the consummation of the Mergers and satisfaction of other customary closing conditions. The respective boards of directors of both Extra Space and Life Storage have unanimously approved the transaction. Extra Space Storage and Life Storage announced that Extra Space stockholders and Life Storage stockholders have voted, separately, to approve the proposed merger at their respective special meetings held virtually on July 18, 2023. The transaction is currently expected to close in the second half of 2023. As of June 6, 2023, the transaction is expected to close in July or August 2023. The transaction is expected to be accretive to core FFO per share (a non-GAAP measure) within the first year following closing. As per filling on July 18, 2023, The transaction is expected to close on July 20, 2023.
Citigroup Global Markets Inc. acted as lead financial advisor and Anthony Gostanian, Pardis Zomorodi, Eric Cho, Holly Bauer, Laura Szarmach, Achraf Farraj, Greg Rodgers, Kenneth Askin, Chris Norton, Arielle Singh, Robert Brown, Jason Cruise, Craig M. Garner and Kevin C. Reyes of Latham & Watkins LLP acted as legal advisors to Extra Space. J.P. Morgan Securities LLC acted as a financial advisor to Extra Space. Wells Fargo Securities and BofA Securities acted as financial advisors and Joseph Gilligan, Bruce Gilchrist, Les Reese and Katherine Keeley of Hogan Lovells US LLP and Quinn Emanuel Urquhart & Sullivan LLP acted as legal advisors to Life Storage. David J. Murray of Phillips Lytle LLP acted as legal advisor to Life Storage. Citigroup Global Markets Inc. acted as fairness opinion provider to Extra Space. Wells Fargo Securities, LLC and BofA Securities, Inc acted as fairness opinion provider to Life Storage. David P. Slotkin of Morrison & Foerster LLP acted as legal advisor to Citigroup Global Markets Inc. Innisfree M&A Incorporated acted as proxy solicitor for Life Storage. MacKenzie Partners acted as proxy solicitor to Extra Space and will receive a fee of $25,000. Extra Space has agreed to pay Citi an aggregate fee of $18 million, of which $2 million was payable upon delivery of Citi?s opinion and $16 million is payable contingent upon consummation of the merger. Life Storage has agreed to pay BofA Securities an aggregate fee of $15 million, $2 million of which was payable upon the delivery of its opinion and the remainder of which is contingent upon the completion of the merger. Life Storage will pay Innisfree reasonable and customary compensation, including a $75,000 retainer fee covering the first month of services, $40,000 per month thereafter. American Stock Transfer & Trust Company acted as transfer agent and registrar for Extra Space.
Extra Space Storage Inc. (NYSE:EXR) completed the acquisition of Life Storage, Inc. (NYSE:LSI) from State Street Corporation (NYSE:STT), BlackRock, Inc. (NYSE:BLK), The Vanguard Group, Inc., Wellington Management Company LLP and others on July 20, 2023. Extra Space paid off $32,000 in secured loans and retired $1,160,000 in balances on Life Storage's line of credit.
In connection with the completion of the merger, the Extra Space board has expanded from 10 to 13 directors with the addition of three new directors designated by Life Storage: Mark G. Barberio, Joseph V. Saffire, and Susan Harnett.