Segro to buy Tritax for £1.1bn including debt

Segro said on Wednesday that it has agreed to buy rival Tritax EuroBox in a deal with an implied enterprise value of around £1.1bn including debt.

Under the terms of the agreement, Tritax EuroBox shareholders will be entitled to receive 0.0765 new Segro shares for each of their shares and a dividend of 1.25 cents per share for the quarter ending 30 September 2024.

The transaction values each Tritax EuroBox share at 68.4p, which is a premium of about 27% to the closing Tritax share price on 31 May, which was the last day before Segro made the offer.

It represents a discount of approximately 14% to Tritax EuroBox's last reported IFRS net asset value.

The deal values Tritax at about £552m, which, based on the company’s net debt as at 31 March 2024, implies an enterprise value of approximately £1.1bn.

Segro chief executive David Sleath said: "This transaction offers the opportunity to acquire a high quality portfolio of big box warehouses in core European markets which would complement and enhance our existing assets. The management of the portfolio will be internalised on completion, taking advantage of economies of scale from our existing, locally-based operating platform.

"We intend to apply the long-established Segro strategy of disciplined capital allocation and operational excellence, based on an efficient and resilient corporate and capital structure and the responsible Segro principles as we do for all assets we own and manage.

"While shareholders can expect this approach to lead to some capital recycling, we recognise the high quality of the portfolio assembled by the manager and look forward to working with it for the benefit of our new and existing shareholders."