Kimco To Acquire RPT Realty; To Be Immediately Accretive To FFO

(RTTNews) - Kimco Realty (KIM) and RPT Realty (RPT) announced a merger agreement under which RPT will be acquired by Kimco in an all-stock deal valued at approximately $2 billion, including the assumption of debt and preferred stock. RPT shareholders will receive 0.6049 of a newly-issued Kimco share for each RPT share they own, representing a total consideration of approximately $11.34 per RPT share. At closing, Kimco stockholders and RPT shareholders are projected to own approximately 92% and 8% of the combined company, respectively.

Kimco said the acquisition will add 56 open-air shopping centers, including 43 wholly-owned and 13 joint venture assets, to existing portfolio of 528 properties. The company will acquire RPT's 6% stake in a 49-property net lease joint venture. Kimco expects the transaction to be immediately accretive to key financial and operating metrics, including initial cost savings synergies of approximately $34 million.

Upon closing, Kimco anticipates a pro forma equity market capitalization of approximately $13 billion and a total enterprise value of approximately $22 billion.