Market Overview

Real Estate Mogul Sam Zell Is Launching A SPAC

Real Estate Mogul Sam Zell Is Launching A SPAC

Sam Zell is one of the biggest names in the real estate markets and an early leader in REITS in the United States. Now, he's launching a SPAC to target the industrial sector.

The Leadership Team: Equity Distribution Acquisition Corp will be led by Sam Zell, the founder of Equity Group Investments. Zell has a track record of 50 years founding companies, leading turnarounds, leading industry consolidations, and taking companies public. Zell has sponsored 11 IPOs.

Zell is widely recognized as a founding father of the REIT, according to the filing.

In the 1990s, Zell created three of the largest REITs. Equity Office Properties, which Zell founded in 1997, was sold for $39 billion in 2007. Equity Residential (NYSE: EQR), a multi-family REIT, and Equity LifeStyle Properties (NYSE: ELS), a manufacturer housing REIT, both have founder Zell as the current chairman. Zell also chairs Equity Commonwealth (NYSE: EQC), an office REIT.

Outside of REITS, Zell is also chairman of energy from waste company Covanta Holding Corporation (NYSE: CVA).

Zell was once the owner of the Chicago Cubs and was part of the $8.2 billion buyout of the Tribune Company. Forbes ranks Zell as the 148th richest American with a net worth of $8.2 billion.

The Offering: Equity Distribution Acquisition Corp plans to trade on the NYSE with symbol EQD. The company is planning on selling 30 million units at $10 each. Each share will have one-third of a warrant to buy a share at $11.50.

Equity Distribution Acquisition Corp: The SPAC plans to target the highly fragmented industrial market in North America, especially focusing on technology-enabled solutions.

The company’s strategy includes using its strong track record in growing companies to identify a potential company. The company plans to help an acquired company with driving innovation and transformation mergers and acquisitions.

Criteria for an acquisition target includes a strong competitive position, potential attractive FCF, strong management team, proven track record, and an attractive risk-adjusted return.

Photo credit: "Sam Zell Shares The Secrets To His Success" via The Ross School of Business - University of Michigan on YouTube.


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