CarrAmerica Realty, the US-listed office property company, announced that it had signed a definitive merger agreement to be acquired by an affiliate of buyout firm Blackstone Group in a transaction valued at approximately US$5.6bn.
Under the terms of the agreement, Blackstone will acquire all of the outstanding common stock of CarrAmerica for US$44.75 per share in cash.
The purchase price represents an 18.4% premium to CarrAmerica’s closing stock price on February 16 2006, the date prior to reports regarding a potential acquisition of CarrAmerica.
CarrAmerica’s board of directors has unanimously approved the merger agreement and has recommended approval of the deal by CarrAmerica’s common stockholders. Completion of the transaction, which is expected in the second quarter of 2006, is contingent upon customary closing conditions and the approval of CarrAmerica’s stockholders.
Blackstone has agreed that, as promptly as practicable after the completion of the merger, it will liquidate the surviving corporation in the merger.
Goldman Sachs acted as financial adviser to CarrAmerica.
Citigroup, Bank of America and Deutsche Bank acted as financial advisers to Blackstone.