Market Overview

UPDATE: Home Properties Shareholders to Recieve $75.23/Share Cash


Home Properties, Inc. (NYSE: HME) ("Home Properties", or the "Company") today announced that it has entered into a definitive agreement (the "Merger Agreement") to be acquired by an affiliate of Lone Star Funds, in a transaction valued at approximately $7.6 billion, including the assumption of existing debt. Upon completion of the transaction, Home Properties will become a privately held company.

Under the terms of the Merger Agreement, Lone Star Funds will acquire all of the outstanding common stock of Home Properties for $75.23 per share in an all-cash transaction (the "Home Properties Merger"). The offer price represents a premium of approximately 9% over Home Properties' unaffected closing stock price on April 24, 2015, the last trading day prior to media reports on a potential transaction, and a premium of approximately 11% over the average closing price of Home Properties' common stock for the 60 days ended April 24, 2015.

"The Home Properties team has built a great company, as reflected by our strong platform, unique assets, and differentiated business strategy," said Edward J. Pettinella, President and Chief Executive Officer of Home Properties. "We believe this transaction with Lone Star Funds provides our stockholders with compelling value for their investment, consistent with our long-term strategy."

Hugh J. Ward III, Co-Head of Real Estate Investments at Lone Star Funds, added, "We are pleased to enter into an agreement to acquire Home Properties and look forward to working with their talented team to complete this transaction and integrate the Company's portfolio into Lone Star Funds' existing multifamily portfolio. This is Lone Star Funds' second large, recent apartment purchase following the 2014 acquisition of a 64 property, 20,439 unit portfolio, and is consistent with our strategy of buying primarily Class B apartments, including workforce housing, located in in-fill markets with strong underlying fundamentals."

Posted-In: News Press Releases


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