The New Biggest P.E. Deal Ever

Nov 20 2006 | 10:21am ET

What can $36 billion buy?

How about the largest publicly-held office building owner?

In the largest private equity transaction in history, The Blackstone Group’s real estate affiliate will acquire Equity Office Properties Trust, which owns all or parts of nearly 600 buildings in 16 states and Washington, D.C., for that astronomical amount, shattering the record, set this summer, by the $33 billion deal for hospital operator HCA, led by Bain Capital and Kohlberg Kravis Roberts.

“We are extremely excited about this landmark transaction with Equity Office, which represents the largest private equity deal in history,” Blackstone senior managing director Jonathan Gray said.

Under the deal, Blackstone Real Estate Partners will pay $48.50 per share—an 8.5% premium—in cash, pending approval by Equity Office’s shareholders. The deal is expected to close early next year.

“We’ve built a great company—epitomized by the caliber of our employees, the quality of our assets and the markets where we operate,” Equity Office President and CEO Richard Kincaid Said. “Our ultimate goal has always been to maximize shareholder value, and we believe we have done that through this transaction with The Blackstone Group.”

An all-star cast of Wall Street banks advised on the deal, with Merrill Lynch working with Equity Office and Goldman Sachs, Bank of America, Morgan Stanley and Blackstone Corporate Advisory on Blackstone’s side. Goldman, BofA and Bear Stearns will lead Blackstone’s acquisition financing.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note