Life Storage: Attractive All-Stock Merger Arb Deal

Summary

• Life Storage, Inc. is a self-storage company that owns and operates over 900 self-storage facilities in the United States.
• The company is being acquired by Extra Space Storage Inc., which will pay 0.895 EXR shares per share of Life Storage.
• The transaction will create the largest storage facility operator in the U.S. in terms of the number of locations.
• Life Storage's current share price suggests little upside, but the company pays a dividend that will likely continue until the deal closes, providing an upside of about 2%.
• All-stock mergers like this one have less general market risk than cash deals, but there is still a risk if the deal is broken up.

JodiJacobson

Life Storage, Inc. (LSI) is a self-storage company that provides storage units to individuals and businesses. The company owns and operates over 900 self-storage facilities in the United States under the namesake brand. Life Storage is being acquired

Analyst’s Disclosure:I/we have a beneficial long position in the shares of LSI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

short EXR