Prologis agrees to acquire DCT Industrial in $8.4-billion deal

Prologis Inc., a property developer that specializes in distribution facilities and logistics, agreed to buy DCT Industrial Trust Inc. for $8.4 billion, including debt.

The boards of both companies unanimously approved the all-stock deal, which is expected to be completed in the third quarter, the companies said Sunday in a statement. DCT shareholders will receive 1.02 Prologis shares for each DCT share. That’s a premium of about 16% over DCT’s Friday close of $58.75.

The transaction is expected to generate $80 million in cost savings and may generate $40 million in additional annual revenue, the companies said.

“For some time, we have considered DCT’s realigned portfolio to be the most complementary to our own in terms of product quality, market position and growth potential,” Prologis Chief Executive Officer Hamid R. Moghadam said in the statement. “This high level of strategic fit will allow us to capture significant scale economies immediately.”

JPMorgan Chase & Co. is Prologis’s financial advisor and Mayer Brown LLP is providing legal counsel. Bank of America Corp. is DCT’s financial advisor and Goodwin Procter LLP is its legal advisor.