Mergers & Acquisitions
Lakeshore Holdings has been involved in 11 Public and Private entity transactions, $67 billion successfully completed. In 2007, Equity Office sold to Blackstone in the largest Public to Private transaction in US history, $39 billion. Sam Zell gave Jeff Johnson attribution for the sale to Blackstone, and all Equity Office transactions that increased the value of of the company from 2003 -2007.
Transaction Summary
Closed February 2007
Largest Public to Private transaction to that date - $39 billion
Sold 580 assets located throughout the United States
Shareholders achieved an annualized total shareholder of over 37% from 2003 to 2007; EOP share price increased 113%, from $25.97 to $55.50
Investment Rational
With Jeff Johnson’s return to Equity Office in 2003 as Chief Investment Officer, the Investment team began a methodical repositioning
By comparing the market value versus the intrinsic value of EOP holdings and the current stock price, the Investment Group was able to identify disposition and investment opportunities that increased shareholder value
The Investment Strategy was based on:
1. Selling non-strategic assets
2. Acquiring strategic assets
3. Repurchasing stock at prices below intrinsic asset values
Jeff was given attribution for all the transactions leading up to and including the go-private transaction with Blackstone.
Results
From 2003 through 2006, the investment team sold non-strategic assets valued at $8.3 billion, acquired strategic $4.1 billion of assets, and repurchased $2.6 billion in undervalued stock
The EOP stock price increased from $26.06/share to $55.50/share, generating a 37% annualized Internal Rate of Return to the shareholders, while maintaining a lowered leveraged, investment grade balance sheet