Plymouth Industrial to be taken private by Makarora, Ares for $2.1 billion

Oct 24 (Reuters) - Plymouth Industrial REIT PLYM.N said on Friday it would be taken private by Makarora Management and Ares Management ARES.N, in a deal worth about $2.1 billion including debt, after it had received a buyout offer from Sixth Street Partners.

Boston, Massachusetts-based Plymouth's shareholders will receive $22 per share from the deal, the company said. Its shares fell more than 2% in after-hours trading following the announcement.

The real estate investment trust earlier this year received an unsolicited, non-binding proposal for $24.10 per share in cash from Sixth Street. As of August, Sixth Street beneficially owns about 9.99% of Plymouth's outstanding common stock.

Makarora founder and CIO Chad Pike said Plymouth's​ portfolio of cost-competitive industrial assets in the Midwest and East Coast is "well-positioned to capitalize on strong industrial demand from these major population centers."

Plymouth said it intends to conduct a 30-day "go-shop" period expiring on November 23, permitting the company and its financial advisors to actively initiate, solicit and consider alternative acquisition proposals from third parties.

The company added that it would pay a fee of $40.1 million if the deal does not go through, or would receive $70.2 million if terminated.

The deal is expected to close in early 2026, subject to approval by Plymouth's shareholders and other customary regulatory approvals.

KeyBanc Capital Markets and J.P. Morgan Securities acted as Plymouth's financial advisors, while Morrison & Foerster and Alston & Bird served as the legal counsel.