RMR Group (RMR) Monday said it has entered into a definitive agreement to buy MPC Partnership Holdings, LLC, doing business<\/span> as CARROLL Multifamily Platform, for $80 million in cash.<\/p>\n
The consideration for the acquisition of the Atlanta, Georgia -based vertically integrated multifamily platform is subject to customary purchase price adjustments.<\/p>\n
The deal also includes the potential for incremental earnout consideration up to $20 million based on the deployment of future capital.<\/p>\n
The deal is expected to be immediately accretive to adjusted EBITDA, adjusted earnings per share and distributable earnings per share.<\/p>\n
The acquisition was unanimously approved by RMR’s Board of Directors, and is expected to close in the fall of 2023, subject to customary conditions.<\/p>\n
CARROLL, with approximately 700 employees, provides asset and property management services to 81 multifamily properties with more than 28,000 units.<\/p>\n
With the acquisition, RMR expects to enter the only major commercial real estate sector in which it does not have a significant presence.<\/p>\n
The transaction further advances RMR’s strategic focus on growing its private capital business, adding around $7 billion in assets under management and over 20 institutional partner relationships.<\/p>\n
The transaction is expected to be funded entirely with cash on hand.<\/p>\n
In the first full year of operations post closing, RMR expects the CARROLL platform to generate more than $35 million in recurring fees and around $11 million to $13 million of Adjusted EBITDA, including $5 million to $6 million of synergies.<\/p>\n
Post transaction, the company also expects to have no debt and around $200 million of cash on hand for further opportunistic growth strategies. <\/p>\n
Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"