Alexander & Baldwin Joins Forces with Blackstone for $2.3 Billion Takeover
In a major development for the Hawaiian business landscape, Alexander & Baldwin, Inc. (NYSE: ALEX) is poised to transition into private ownership following a definitive merger agreement worth approximately $2.3 billion. This agreement stipulates that shareholders will receive $21.20 per share in cash, reflecting a robust 40% premium over the closing stock price on December 8, 2025, the day prior to the transaction's announcement. The acquisition is a joint venture involving the MW Group and funds managed by the renowned Blackstone Real Estate and DivcoWest.
Alexander & Baldwin has long been a notable player in the Hawaiian commercial real estate sector, boasting a diverse portfolio that encompasses around four million square feet of premier commercial space. The company mainly operates grocery-anchored shopping centers and possesses 21 retail centers, 14 industrial assets, and four office properties, not to mention extensive ground lease interests across 146 acres. Operating for 155 years, the company has adapted alongside Hawai'i's evolving economy, contributing significantly to various sectors including agriculture, tourism, and real estate development.
Lance Parker, President and CEO of A&B, expressed optimism regarding the merger, highlighting that the transition to private ownership will bolster the company’s agility in responding to community needs. "For 155 years, AB has grown alongside Hawaiʻi, shaped by the people, values, and communities that define these islands," he stated. He emphasized that the new ownership group, with their substantial real estate expertise, would enhance AB’s capacity to serve its tenants and communities effectively.
The deal, unanimously approved by the A&B Board of Directors, is anticipated to finalize in the first quarter of 2026, contingent upon standard closing conditions, including shareholder approval. Once the transaction concludes, A&B will no longer trade on the NYSE. Following the acquisition announcement, AB's board also approved a dividend of $0.35 per share to be paid on January 8, 2026, to shareholders on record by December 19, 2025.
Stephen Metter, CEO of the MW Group, conveyed enthusiasm regarding the acquisition, underscoring the company's commitment to uphold the legacy of Alexander & Baldwin by amplifying its positive impact within Hawaiian communities.
Blackstone Real Estate has a remarkable track record in Hawai'i, managing several prestigious properties while creating over 9,000 jobs. David Levine, Co-Head of Americas Acquisitions at Blackstone, pointed out that this acquisition reaffirms their commitment to supporting local businesses while responsibly managing and expanding their portfolio in the region.
Notably, DivcoWest also expressed excitement about the opportunity to collaborate with A&B. Caleb Cragle, Head of Strategic Investments at DivcoWest, remarked on their eagerness to contribute to A&B's future success.
As part of the merger agreement, the investor group has committed to invest more than $100 million to enhance A&B’s existing properties, ensuring they meet high-quality standards while contributing meaningfully to local communities. This strategic focus aligns with the company’s vision of continuing to evolve with Hawai’i and remaining steadfast in its role as a partner for the islands.
In conclusion, this significant acquisition marks a pivotal moment for Alexander & Baldwin and serves to reinforce its commitment to supporting the vibrant communities of Hawai'i. As they transition to private ownership, A&B is set to embrace a new chapter, continuing its dedication to commercial development and community service in the unique Hawaiian context.
Alexander & Baldwin has long been a notable player in the Hawaiian commercial real estate sector, boasting a diverse portfolio that encompasses around four million square feet of premier commercial space. The company mainly operates grocery-anchored shopping centers and possesses 21 retail centers, 14 industrial assets, and four office properties, not to mention extensive ground lease interests across 146 acres. Operating for 155 years, the company has adapted alongside Hawai'i's evolving economy, contributing significantly to various sectors including agriculture, tourism, and real estate development.
Lance Parker, President and CEO of A&B, expressed optimism regarding the merger, highlighting that the transition to private ownership will bolster the company’s agility in responding to community needs. "For 155 years, AB has grown alongside Hawaiʻi, shaped by the people, values, and communities that define these islands," he stated. He emphasized that the new ownership group, with their substantial real estate expertise, would enhance AB’s capacity to serve its tenants and communities effectively.
The deal, unanimously approved by the A&B Board of Directors, is anticipated to finalize in the first quarter of 2026, contingent upon standard closing conditions, including shareholder approval. Once the transaction concludes, A&B will no longer trade on the NYSE. Following the acquisition announcement, AB's board also approved a dividend of $0.35 per share to be paid on January 8, 2026, to shareholders on record by December 19, 2025.
Stephen Metter, CEO of the MW Group, conveyed enthusiasm regarding the acquisition, underscoring the company's commitment to uphold the legacy of Alexander & Baldwin by amplifying its positive impact within Hawaiian communities.
Blackstone Real Estate has a remarkable track record in Hawai'i, managing several prestigious properties while creating over 9,000 jobs. David Levine, Co-Head of Americas Acquisitions at Blackstone, pointed out that this acquisition reaffirms their commitment to supporting local businesses while responsibly managing and expanding their portfolio in the region.
Notably, DivcoWest also expressed excitement about the opportunity to collaborate with A&B. Caleb Cragle, Head of Strategic Investments at DivcoWest, remarked on their eagerness to contribute to A&B's future success.
As part of the merger agreement, the investor group has committed to invest more than $100 million to enhance A&B’s existing properties, ensuring they meet high-quality standards while contributing meaningfully to local communities. This strategic focus aligns with the company’s vision of continuing to evolve with Hawai’i and remaining steadfast in its role as a partner for the islands.
In conclusion, this significant acquisition marks a pivotal moment for Alexander & Baldwin and serves to reinforce its commitment to supporting the vibrant communities of Hawai'i. As they transition to private ownership, A&B is set to embrace a new chapter, continuing its dedication to commercial development and community service in the unique Hawaiian context.
Topics General Business）
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