LXP Industrial Trust (NYSE:LXP) shares gained 3.8% in premarket trading on Monday after Brookfield Asset Management (NYSE:BAM) and Canada Pension Plan Investment Board announced an agreement to acquire the industrial real estate company in an all-cash transaction valued at approximately $5.2 billion, including net debt and preferred equity.
Under the terms of the definitive merger agreement, LXP shareholders will receive $61.20 in cash for each share they own. The offer represents a 12.3% premium to the company’s 30-day volume-weighted average share price and a 19.8% premium to its 90-day VWAP for the period ending July 17, 2026.
Deal targets major U.S. industrial property portfolio
LXP owns one of the largest portfolios of modern warehouse and logistics properties in the United States, with approximately 53 million square feet of industrial space spread across 108 facilities located in key Sunbelt and Midwest markets.
The acquisition has received unanimous approval from LXP’s Board of Trustees and is expected to be completed during the fourth quarter of 2026, subject to shareholder approval and the satisfaction of customary closing conditions. The agreement does not include a financing contingency.
LXP begins go-shop period before deal closes
The merger agreement includes a 40-day “go-shop” period, which will remain in effect until 11:59 p.m. New York City time on August 28, 2026. During this period, LXP is permitted to actively seek and evaluate alternative acquisition proposals.
The company retains the right to terminate the agreement if it accepts a superior offer, subject to payment of a termination fee.
LXP also announced it will suspend common shareholder dividend payments until the transaction is completed or the merger agreement is terminated. Once the acquisition closes, the company’s shares will be delisted from the New York Stock Exchange and LXP will operate as a privately held business.
LXP Industrial Trust stock price
Brookfield Asset Management stock price
