DENVER-The boards of locally based ProLogis and Catellus Development, headquartered in San Francisco, have given their blessing to a marriage of the two firms. The acquisition of Catellus--valued at an all-in cost of $4.9 billion--will create a company that boasts 350 million sf of distribution facilities in 75 North American, European and Asian markets. The 2,250 facilities included in the mix are owned or managed and either complete or underdevelopment.

Shareholders of Catellus will have the choice of receiving either $33.81 in cash or 0.822 of a ProLogis common share for each Catellus share they own. That's a 16% premium to Catellus' Friday closing price of $29.24 on the New York Stock Exchange. ProLogis will also assume $1.3 billion in Catellus debt and transaction costs as part of the deal.

Following the close of the deal, the company's board will consist of 12 ProLogis members, as well as Catellus chairman and chief executive Nelson C. Rising and another Catellus board member to be named later. Ted Antenucci, president of Catellus Commercial Development, will be named as president of global development, ProLogis officials say.

"This transaction dramatically changes the landscape of the US industrial real estate market by consolidating two of the largest industrial property developers in North America," ProLogis' CEO Jeffrey H. Schwartz says. "The addition of Ted Antenucci, president of Catellus Commercial Development, and his team will enhance ProLogis' North American development capabilities and, in turn, our growth potential and shareholder value."

GlobeSt.com will follow the story and industry reaction.