31.10.2006 09:42 Real Estate
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Trustreet said the deal was worth $3 billion including debt. The $17.05 a share price is a 36 percent premium to Trustreet's closing stock price of $12.51 on Friday.
The move will expand GE Capital Solutions' presence in the casual dining and quick-serve businesses. Orlando, Florida-based Trustreet's customers include Wendy's, Burger King, Jack-In-The-Box, Arby's, Denny's and Pizza Hut franchisees.
"Trustreet Properties increases the presence of GE Capital Solutions Franchise Finance on the east coast, provides a broader suite of finance products and sales capabilities, and adds strong and long-term relationships in the restaurant segment," said Richard Laxer, CEO of GE Capital Solutions in a statement.
The deal is expected to close in the first quarter of 2007 and is subject to approval by Trustreet shareholders.
Trustreet's financial adviser was Banc of America Securities LLC. GE Capital Solutions was advised by Wachovia Securities.
Trustreet shares rose $4.47, or 35.7 percent, to $16.98 and GE's rose 2 cents to $35.23. Both trade on the New York Stock Exchange.
LATEST REIT DEAL
Monday's transaction is just the latest of many this year involving a real estate investment trust (REIT).
As of October 25, the year-to-date value of mergers involving U.S. real estate companies reached $104 billion via 355 deals, the highest year-to-date volume on record, according to research firm Dealogic.
Deals involving REITs accounted for $63.5 billion or 61 percent of that M&A activity, a three-fold increase from $21.1 billion for the same period last year, Dealogic said.
