Dealmaker: GIC, Oak Street to Acquire STORE Capital in $14B Transaction

Singaporean sovereign wealth fund GIC and net lease investor Oak Street, Chicago, agreed to acquire net-lease real estate investment trust STORE Capital, Scottsdale, Ariz., in a $14 billion all-cash transaction.

Evercore and Goldman Sachs & Co. LLC served as STORE Capital’s financial advisor and DLA Piper LLP acted as its legal counsel. Eastdil Secured Advisors LLC and Citigroup Global Markets Inc. were GIC and Oak Street’s financial advisors. Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to GIC and Kirkland & Ellis LLP acted as Oak Street’s legal counsel.

STORE Capital stockholders will receive $32.25 per share in cash under merger agreement, a 20.4% premium over STORE Capital’s closing stock price on September 14.

“This all-cash transaction delivers a meaningful premium that provides immediate and certain value for our stockholders in a challenging market environment,” said Tawn Kelly, Chairman of the Board of Directors of STORE Capital.

Adam Gallistel, Head of Americas Real Estate with GIC, called STORE Capital one of the largest dedicated U.S. net lease real estate companies in a nearly $4 trillion-dollar market. “We are confident [STORE Capital] will continue its trajectory of accretive growth by meeting the demand for long-term financing solutions from middle-market U.S. companies,” he said.

The firms said they expect the transaction to close in early 2023. The closing is not subject to any financing conditions.