Shurgard, the European self-storage leader, has acquired UK-based rival Lok’nStore for £378 million.The deal, expected to result in some job reductions, signifies a significant move in the self-storage industry.
Shareholders of Lok’nStore are poised to benefit from the acquisition, receiving an attractive offer of 1,110p per share, reflecting a substantial premium compared to recent market prices. This strategic move is set to bolster Shurgard’s presence, particularly in key markets like the South East and Manchester.
Lok’nStore, a longstanding player in the UK self-storage sector with a strong presence in the South East and Manchester, brings with it 32 operational properties and several more in development. However, the merger could entail restructuring, with Shurgard eyeing streamlining opportunities in administrative functions and head office roles.
Shurgard’s CEO, Marc Oursin, expressed enthusiasm about the acquisition, emphasizing its potential to double the company’s UK footprint and drive growth in both existing and new markets. Meanwhile, Lok’nStore’s board sees the deal as a testament to the value of its real estate portfolio and operational excellence.
The acquisition is contingent upon approval from Lok’nStore shareholders, underscoring the significance of their consent in finalizing this landmark agreement. With both parties optimistic about the synergies and growth prospects, the self-storage landscape in Europe is poised for notable developments.
