MEMPHIS-Mid-America Apartment Communities, based here, and Colonial Properties Trust said Monday that they've agreed to merge, with MAA paying about $2.2 billion in stock to acquire its Birmingham, AL-based multifamily competitor. The combined company will control approximately 85,000 apartments at 285 properties across both major and secondary markets in the Sunbelt, and will trade as an UPREIT under the MAA name.
The all-stock merger is intended to be a tax-free transaction, creating a company with a pro forma equity market capitalization of approximately $5.1 billion and a total market cap of $8.6 billion. MAA, whose shareholders will own about 56% of the combined company, and Colonial expect the transaction to close during the third quarter, according to a release.
“The combination of MAA and Colonial Properties Trust will provide an enhanced competitive advantage across the Sunbelt region,” said H. Eric Bolton Jr., MAA's CEO, in the release. “Through capitalizing on the strengths gained from the combination of the two platforms, we will enhance our ability to serve residents across the region, drive higher margins as a result of synergies and advantages generated by the merger, and enhance career opportunities for our associates.”
The combined company's 10 largest markets will be Dallas/Ft. Worth, Atlanta, Austin, Raleigh, Charlotte, Nashville, Jacksonville, Tampa, Orlando and Houston. It will be headquartered in Memphis.
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