Simon Property Group to Acquire Taubman Centers Inc. in $3.6 Billion Deal

The nation’s largest mall operator, Simon Property Group, will acquire Taubman Centers Inc. in an all-cash deal. Simon will reportedly pay $52.50 per share for an 80% stake in Taubman’s REIT—valuing the deal at $3.6 billion. The Taubman family will retain a 20% ownership stake in TRG. The purchase price represents a 19% premium above Taubman’s total enterprise value, which includes preferred equity and debt.

Based in Bloomfield Hills, MI, Taubman manages more than 20 super-regional centers in the U.S. and Asia that total around 25 million square feet. Simon Property Group is based in Indianapolis and is an S&P 100 company with locations across North America, Europe, and Asia.

Taubman’s assets will continue to be managed by the existing executive team; Taubman’s President, CEO and Chairman, Robert Taubman, will remain at the helm in partnership with Simon Property Group.

Simon Chairman of the Board, President and CEO, David Simon, said, “By joining together, we will enhance the ability of TRG to invest in innovative retail environments that create exciting shopping and entertainment experiences for consumers, immersive opportunities for retailers, and substantial new job prospects for local communities. I look forward to partnering with Bobby and the TRG executive team in this exciting new joint venture.”

Robert Taubman added, “I am proud of all that this company’s talented employees have achieved and am thrilled to have the opportunity to join together with Simon through this joint venture. Over the last few years, David and I have developed an excellent personal relationship and, importantly, Simon shares our commitment to serving retailers, shoppers and the communities in which we operate. The Board and I are confident that Simon is the ideal partner to help us build on our progress.”

The deal is expected to close this summer.