M&A · Financials · Real Estate Investment Trusts
Vici Properties Inc. to acquire MGM Growth Properties LLC
Announced Aug 5, 2021 · Closed Apr 29, 2022
Deal value—
Premium16.0%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll stock
Transaction
- Acquirer
- Vici Properties Inc. (VICI)
- Target
- MGM Growth Properties LLC
- Buyer type
- Strategic
- Offer price per share
- —
- Enterprise value
- —
- Status
- Closed Apr 29, 2022
Deal protections
- Break fee (target pays)
- $421M
- Reverse fee (buyer pays)
- $709M
- Go-shop
- No-shop
- Financing
- Committed · Deutsche Bank, Morgan Stanley
Advisors
- To the acquirer
- Morgan Stanley
- To the target
- Evercore
- Morgan Stanley fee
- $5.0M
- Evercore fee
- $7.0M
Sector context · Financials
- Comparable deals
- 47 in the prior 24 months
- Premium
- 16.0% vs. 39.8% sector median
- EV / Adj. EBITDA
- Sector median 21.6x
- Break fee
- Sector median 3.7%
Timeline
- AnnouncedAug 5, 2021
- Proxy filedSep 23, 2021
- Definitive proxySep 23, 2021
- Shareholder vote—
- ClosedApr 29, 2022
Valuation · fairness opinions
Discounted cash flowMorgan Stanley$38.82$46.40
Discounted cash flowMorgan Stanley$26.27$31.39
Discounted cash flowMorgan Stanley$41.77$48.01
Discounted cash flowMorgan Stanley$27.57$31.72
Premiums paidMorgan Stanley$41.76$45.45
Discounted cash flowEvercore$28.71$44.43
Discounted cash flowEvercore$32.72$40.59
Discounted cash flowEvercore$21.95$32.89
Discounted cash flowEvercore$26.86$32.23
Trading comparablesEvercore$34.98$40.76
Implied value per MGM Growth Properties LLC share by analysis, from Morgan Stanley and Evercore · DCF discount rate 5.4%–6.7%.