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

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