SmartStop Self Storage To Be Bought By Extra Space Storage For $1.4 Bln

(RTTNews) - SmartStop Self Storage, Inc. said Monday that it has agreed to be bought by Extra Space Storage Inc. (EXR) for a total purchase price of $1.4 billion. Under the deal, SmartStop shareholders will receive $13.75 per share in cash. Extra Space will pay $1.29 billion, and the remaining $120 million will come from the sale of certain assets by SmartStop at or prior to the closing.

The boards of directors of both companies have approved the merger.

Certain assets of SmartStop will be sold prior to the closing of the merger, including one store in California, beneficial interests in two stores in Alabama and five stores in Toronto, Canada. The purchase price for those assets is included in the $13.75 per share price payable to stockholders.

At the closing of the merger, the parties will enter into property management agreements for the management of properties owned by Strategic Storage Trust II, Inc. and Strategic Storage Growth Trust, Inc. by Extra Space. SmartStop Asset Management, LLC will be sold simultaneously with the closing of the merger to an entity controlled by Schwartz and will serve as the sponsor of SST II and SSGT following the merger.

The merger is expected to close during the latter half of 2015.