Halesowen-based property group bought for £414.7m
Property group A&J Mucklow, based in Halesowen, is being bought by giant rivals London Metric.
The board of the real estate investment trust, which was founded in 1933, is being sold for £414.7 million.
The group, which has its head office in Whitehall Road, owns and manages more than 3.8 million sq ft of commercial property the majority of which is in the West Midlands.
Its portfolio includes multi-let industrial estates, larger distribution units offices and retail properties.
A&J Mucklow chairman and chief executive Rupert Mucklow said he was am confident LondonMetric was the right fit for Mucklow.
"LondonMetric has a complementary portfolio which mirrors Mucklow's focus on high quality income producing properties and the LondonMetric management team has the necessary expertise to build on the success that Mucklow has achieved over the 57 years it has been a listed company.
"The combination recognises the value of the Mucklow portfolio and resolves the uncertainty around succession planning. I am excited about the future for the combined group as a more resilient and diversified UK REIT."
The 655.2p-per-share offer will be paid with a mixture of £130m cash and shares in the enlarged group worth £285m.
Shareholders with a combined stake of 39.35 per cent in Mucklow have agreed to back the deal.
Patrick Vaughan, chairman of LondonMetric, said: "I am pleased that we have agreed a £414.7 million recommended offer to acquire A&J Mucklow. The combination of their assets, of which approximately 70 per cent is in distribution and industrial property, is consistent with our strategy of increasing our urban logistics exposure.
"The combination has compelling strategic and portfolio rationale with strong operational and financial benefits. I am delighted to say that we think this deal will be immediately earnings enhancing for shareholders."
A& J Mucklow's industrial holdings include Mucklow Park at the i54, Wolverhampton; Kings Hill Business Park and Wednesbury One, Wednesbury; Enterprise Trading Estate and Yorks Park, Dudley; Birchley Island, Oldbury and Mucklow Hill Trading Estate, Shentone Trading Estate and Forge Trading Estate, Halesowen.