Ares Management Corporation (NYSE:ARES) has just announced its definitive agreement to acquire the international business of GLP Capital Partners Limited and certain affiliates, excluding operations in greater China, in a transaction valued at $3.7 billion. The consideration includes approximately $1.8 billion in cash and approximately $1.9 billion in Ares Class A common shares. This transaction is expected to nearly double Ares Real Estate's assets under management (AUM) to approximately $96 billion across North America, Europe, Asia, and Latin America.
GCP International, the firm being acquired, has $44 billion of AUM as of June 30, 2024, and is known for its platforms in new economy sectors such as industrial, digital infrastructure, and self-storage. It has significant local presence in major geographies, managing over 320 million square feet of industrial properties as of June 30, 2024.
The transaction is expected to be modestly accretive to Ares' after-tax realized income per share of Class A and non-voting common stock in the first full calendar year following the acquisition, with meaningfully higher accretion expected in future years.
The acquisition is structured to include long-term performance incentives designed to align GCP International leadership with the interests of fund clients and Ares stockholders. The transaction is expected to close in the first half of 2025, subject to customary regulatory approvals and other closing conditions.
This strategic acquisition cements Ares as a leading global real estate alternative asset manager and adds complementary investment, development, and operating capabilities in key new economy sectors and regions in industrial real estate and digital infrastructure. Ares and GCP International believe that the industrial real estate sector continues to exhibit strong and resilient fundamentals across market cycles, accelerated by long-term demand tailwinds, including the growth of e-commerce.
The transaction is expected to create a top three owner and operator of industrial assets globally and is part of Ares' continued effort to grow its capabilities and offerings to its clients, focusing on expanding its presence in key geographies and in sectors that are well positioned to benefit from attractive long-term structural trends.
As of June 30, 2024, Ares Management Corporation's global platform had over $447 billion of assets under management, with more than 2,950 employees operating across North America, Europe, Asia Pacific, and the Middle East. Following these announcements, the company's shares moved -2.4%, and are now trading at a price of $156.75. For the full picture, make sure to review Ares Management's 8-K report.
