Warehousing real estate giants AMB Property Corp. and ProLogis today said they have a definitive agreement to merge, creating one of the largest companies in the sector with more than $46 billion in assets.
Denver-based ProLogis owns 15 warehousing properties in Cumberland and Dauphin counties and has more than 22 million square feet in Pennsylvania, according to the company.
AMB Property, based in San Francisco, owns and operates 158 million square feet of industrial buildings in 15 countries, including a 700,000-square-foot distribution center in Allentown, according to its website.
The companies said Jan. 26 they were talking about a merger.
In the deal, each ProLogis share will be converted to 0.4464 shares of newly issued AMB Property stock, according to the companies. ProLogis’ equity holders will own about 60 percent of the new company to AMB equity holders’ 40 percent based on the exchange ratios.
AMB Property and ProLogis are traded on the New York Stock Exchange under the ticker symbols AMB and PLD, respectively.
The companies said they expect the deal to close in the second quarter following shareholder approval. ProLogis will be the surviving name of the company and its stock will continue to trade on the NYSE under its current ticker symbol. Its corporate headquarters will be in San Francisco and operating headquarters will be in Denver.
The deal is expected to save $80 million over the next 18 months, the companies said.