Prologis is buying rival US-based logistics real estate developer DCT Industrial for $8.4 billion.
The acquisition gives Prologis more than 65 hectares of additional industrial project space and almost 80 hectares of land in pre-development, predominantly in Seattle, Atlanta, South Florida and Southern California.
“For some time, we have considered DCT’s realigned portfolio to be the most complementary to our own in terms of product quality, market position and growth potential,” said Prologis chairman and CEO, Hamid Moghadam. “This high level of strategic fit will allow us to capture significant scale economies immediately.”
The company said the merger was expected to produce around $80m in cost savings. The transaction, which is expected to close in the third quarter of this year, is subject to the approval of DCT stockholders and other customary closing conditions.
"This transaction underscores the exceptional quality of DCT’s portfolio, platform and customer relationships, which our talented team has worked hard to create,” said DCT Industrial president and CEO, Philip Hawkins. “Our shared commitment to quality, exceeding expectations and enhancing customer experience makes this a perfect combination."
DCT counts Nissan, John Deere and Bridgestone among its customers. Along with BMW, Prologis supports a range of logistics providers servicing the automotive industry including Ceva, DB Schenker, DHL, Geodis, Kuehne + Nagel and XPO Logistics.