(RTTNews) – Brookfield Asset Management Ltd (BAM) and Canada Pension Plan Investment Board (CPP Investments) have agreed to acquire LXP Industrial Trust in an all-cash deal valued at about $5.20 billion, including debt and preferred equity, the companies said Monday.
Under the terms of the agreement, LXP shareholders will receive $61.20 per share, a 12.3% premium to the company’s 30-day volume-weighted average share price through July 17, 2026.
Upon completion of the deal, LXP’s shares will cease trading on the New York Stock Exchange and the company will become privately held.
LXP owns a portfolio of approximately 53 million square feet of warehouse and logistics facilities across 108 properties in key U.S. industrial markets, primarily in the Sunbelt and Midwest. The portfolio is characterized by strong occupancy, long-term leases and stable cash flows.
“The LXP Board unanimously determined that this transaction with Brookfield and CPP Investments fully maximizes value for our shareholders,” said Thomas W. Eglin, Jr., Chairman and Chief Executive Officer of LXP.
“The acquisition aligns with our strategy of investing in high-quality real estate with durable cash flows and opportunities to create value through active asset management,” said Lowell Baron, Chief Executive Officer of Brookfield Real Estate.
” The industrial sector, particularly in the U.S., continues to offer attractive long-term investment opportunities, supported by structural demand drivers including domestic manufacturing, evolving global supply chains and population growth across key Sunbelt markets,” said Sophie van Oosterom, Managing Director, Head of Real Estate at CPP Investments.
The transaction is expected to close in the fourth quarter of 2026.
The agreement includes a 40-day go-shop period ending August 28, 2026, during which LXP may solicit and evaluate alternative acquisition proposals. The company may terminate the agreement to accept a superior offer, subject to certain conditions and the payment of a termination fee.
LXP has also agreed to suspend dividends until the transaction closes or the merger agreement is terminated. The company said it plans to release its second-quarter results as scheduled on July 29.
In pre-market trading, LXP shares rose more than 4% after closing at $58.51 on Friday, while Brookfield shares slipped 0.27% from their previous close of $48.33.
