LXP Industrial Trust to Be Acquired by Brookfield and CPP in $5.2 Billion Deal

LXP Industrial Trust (NYSE: LXP) has agreed to be acquired by Brookfield Asset Management (NYSE: BAM) and the Canada Pension Plan Investment Board in an all-cash transaction valued at approximately $5.2 billion. The deal, which includes the assumption of net debt and preferred equity, sent LXP shares higher in premarket trading on Monday.

Transaction Terms

Under the terms of the definitive merger agreement, LXP shareholders will receive $61.20 per share in cash. According to the announcement, this price represents a significant premium over the company's recent trading history.

• The offer is a 12.3% premium to LXP's 30-day volume-weighted average price (VWAP).
• It also reflects a 19.8% premium to the 90-day VWAP for the period ended July 17, 2026.

The transaction has received unanimous approval from LXP’s Board of Trustees and is not contingent on a financing condition.

Path to Closing

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The agreement includes a 40-day "go-shop" period expiring at 11:59 p.m. New York City time on August 28, 2026. This provision allows LXP to actively solicit and potentially enter into a superior acquisition proposal, subject to the payment of a termination fee to Brookfield and CPP.

The acquisition is expected to close in the fourth quarter of 2026, pending customary closing conditions, including approval from LXP shareholders. LXP owns a major portfolio of modern logistics facilities, comprising approximately 53 million square feet across 108 properties in the U.S. Sunbelt and Midwest.

Market Impact

In response to the news, shares of LXP Industrial Trust jumped 3.8% in premarket trading. Upon the deal's completion, LXP will become a privately held company, and its shares will be delisted from the New York Stock Exchange.

LXP also announced that it has agreed to suspend the payment of its common share dividends until the transaction is either completed or the agreement is terminated.