M&A · Financials · Real Estate Investment Trusts
Kite Realty Group Trust to acquire Retail Properties of America, Inc.
Announced Jul 19, 2021 · Closed Oct 22, 2021
Deal value$2.79BEV $3.94B
Premium13.0%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll stock$12.98 per share
Transaction
- Acquirer
- Kite Realty Group Trust (KRG)
- Target
- Retail Properties of America, Inc. (RPAI)
- Buyer type
- Strategic
- Offer price per share
- $12.98
- Enterprise value
- $3.94B
- Status
- Closed Oct 22, 2021
Deal protections
- Break fee (target pays)
- $107M · 3.8%
- Reverse fee (buyer pays)
- $70.0M · 2.5%
- Go-shop
- No-shop
- Financing
- Committed · Citigroup, KeyBanc Capital Markets, BofA Securities
Advisors
- To the acquirer
- BofA Securities
- To the target
- Citigroup
- BofA Securities fee
- $16.0M
- Citigroup fee
- $3.0M
Sector context · Financials
- Comparable deals
- 43 in the prior 24 months
- Premium
- 13.0% vs. 42.7% sector median
- EV / Adj. EBITDA
- Sector median 21.6x
- Break fee
- 3.8% vs. 3.7% sector median
Timeline
- AnnouncedJul 19, 2021
- Proxy filedSep 14, 2021
- Definitive proxySep 14, 2021
- Shareholder voteOct 19, 2021
- ClosedOct 22, 2021
Valuation · fairness opinions
Trading comparablesBofA Securities$15.00$17.75
Trading comparablesBofA Securities$15.00$16.75
Discounted cash flowBofA Securities$12.00$18.25
Discounted cash flowBofA Securities$14.25$21.00
Trading comparablesBofA Securities$20.25$24.25
Discounted cash flowCitigroup$12.95$16.76
Discounted cash flowCitigroup$19.06$24.82
Trading comparablesCitigroup$12.81$22.96
Trading comparablesCitigroup$12.34$22.06
Trading comparablesCitigroup$9.61$17.20
Offer $12.98
Implied value per Retail Properties of America, Inc. share by analysis, from BofA Securities and Citigroup · DCF discount rate 6.5%–8%.