# Total consideration of USD 1,870m, comprising new EQT AB shares USD 800m and cash USD 1,070m (including refinancing of USD 300m of existing Exeter debt)
# The combination accelerates EQT AB's strategic growth ambition within Real Estate, creating a scaled thematic investment platform with global reach
# Transaction is consistent with EQT AB's strategy and financial targets and is expected to be accretive to EQT AB's earnings in 2021
# Further strengthen EQT as a global leader in value-add investment strategies across private equity, infrastructure and real estate
The transaction is part of EQT AB’s strategic growth ambitions within real estate and creates a scaled thematic investment platform across North America and Europe. It also provides Exeter management with the ability to continue their track-record as a top performing real estate investment manager. Furthermore, the transaction provides the ability to utilize synergies to further enhance investment performance and for the combined platform to benefit from EQT’s integrated approach to digitalization and sustainability.
Majority owned by Ward Fitzgerald and other Exeter management team, Exeter is focused on acquiring, developing and managing logistics/industrial, life science/office and residential properties mainly across the US and Europe. Founded in 2006, Exeter has built the business based on a hands-on, vertically integrated operator approach. With 37 local deal offices, Exeter combines local execution with a global reach, mirroring EQT’s local-with-locals approach. For 2020, Exeter is expected to generate approximately USD 135m in revenues and approximately USD 80m in EBITDA (excluding carried interest). The proposed consideration is expected to equate to a mid-teens EBITDA multiple on a run-rate basis at completion.
Christian Sinding, CEO and Managing Partner of EQT AB:
“We are excited to accelerate our strategy of building a globally-scaled real estate platform and diversifying the firm within private markets by joining forces with Exeter. We have a high bar for strategic M&A, and Exeter is one of the few opportunities we have identified which clears and well surpasses it. With its value-creation-focused investment approach, one of the strongest track-records in value-add real estate globally, and importantly, a people-and-performance-centric culture, we are all well-aligned. I am delighted to welcome Ward and the Exeter team to the EQT family, and we are looking forward to working together to take EQT Exeter to the next level.”
Lennart Blecher, Head of EQT Real Assets and Deputy Managing Partner:
“Scaling EQT’s real estate platform has been a key priority for EQT Real Assets. The combination of Exeter and EQT’s existing real estate business is highly complementary and creates a leader in thematic value-add real estate investments, allowing EQT to scale up local execution while also adding a prolific single asset deal platform. Exeter is a hidden gem with very strong performance due to a clear operational mindset. We believe this is synergistic for both parties, with EQT able to bring multiple benefits to the Exeter business with the strength of our industry and client relationships and our future-proofed operating platform.”
Ward Fitzgerald, CEO and Founder of Exeter:
“EQT is a fantastic strategic and cultural fit for our business. We share a similar philosophy and investment approach, and we have a complementary global platform which can accelerate the growth of opportunities that we make available to both current and future clients. For our day-to-day activities, it will be business as usual. We will continue to be fully focused on driving returns by utilizing our unique local execution of small and mid-cap acquisitions, adhering to our real estate solutions ethic to our over 1,200 corporate client/tenants and directly performing our own leasing, property management and development. We are excited about the opportunity ahead of us to become more of a global leader in real estate by teaming with EQT.”