Segro agrees £552m takeover for rival Tritax EuroBox

Warehouse giant Segro has agreed to buy rival Tritax EuroBox in a deal worth around £552 million.

The all-share deal values each Tritax share at 68.4p, which the firms said marks a premium of around 27% on the closing price of the company’s stock on May 31.

Including debt, the offer values Tritax at around £1.1 billion.

It sees FTSE 100-listed Segro swoop in on the group after Brookfield Global Asset Management said in June that it was in the early stages of considering a cash offer for Tritax.

Tritax then said in July that it was mulling approaches from Brookfield and had seen interest from other possible suitors.

Tritax said it had “carefully reviewed and negotiated a range of proposals” since early June.

Chairman Robert Orr said the offer comes against the background o a “difficult macroeconomic environment for the property sector”.

He said: “The transaction with Segro represents a compelling opportunity for Tritax EuroBox shareholders to achieve a significant and immediate uplift in the value of their investment and stronger total shareholder returns.”

Segro chief executive David Sleath said: “This transaction offers the opportunity to acquire a high-quality portfolio of big box warehouses in core European markets which would complement and enhance our existing assets.

“The management of the portfolio will be internalised on completion, taking advantage of economies of scale from our existing, locally-based operating platform.”