Deal Overview
Brookfield Asset Management (NYSE:BAM) and the Canada Pension Plan Investment Board (CPP) announced an all‑cash acquisition of LXP Industrial Trust (NYSE:LXP) valued at approximately $5.2 billion, inclusive of net debt and preferred equity. The definitive merger agreement sets the purchase price at $61.20 per share.
Transaction Terms
The per‑share price represents a 12.3% premium to LXP’s 30‑day volume‑weighted average price (VWAP) and a 19.8% premium to its 90‑day VWAP for the period ending July 17, 2026. The agreement has been unanimously approved by LXP’s Board of Trustees. Closing is expected in the fourth quarter of 2026, subject to customary shareholder approval and other standard closing conditions. The transaction is not subject to a financing condition.
Go‑Shop Provision
A 40‑day “go‑shop” period commences upon signing and expires at 11:59 p.m. New York City time on August 28, 2026. During this window LXP may solicit alternative acquisition proposals and may terminate the Brookfield‑CPP agreement to pursue a superior offer, subject to payment of a termination fee.
Portfolio Details
LXP owns one of the largest modern warehouse and logistics portfolios in the United States, comprising approximately 53 million square feet across 108 properties located primarily in Sunbelt and Midwest industrial markets.
Shareholder and Market Implications
LXP has agreed to suspend payment of common‑share dividends until the transaction either closes or is terminated. Upon completion, LXP’s shares will cease trading on the New York Stock Exchange and the company will become privately held.
Market Reaction
Following the announcement, LXP Industrial Trust shares rose 3.8% in pre‑market trading on the Monday after the news release.