Extra Space Storage franchise announces one-year anniversary of storage USA acquisition.
Extra Space Storage Inc. today celebrates the one-year anniversary of its acquisition of Storage USA from GE Commercial Finance, the business-to-business financial services unit of the General Electric Corporation.
The transaction, for approximately $2.3 billion in cash, made the Company the second largest self-storage operator in the U.S. with over 630 properties owned or under management in 34 states including Washington, DC.
The Company purchased one-hundred percent of 61 Storage USA properties, and through a joint venture with Prudential Real Estate Investors (“PREI”), purchased an ownership interest in an additional 259 Storage USA properties. The Company also acquired Storage USA’s equity interest in 54 joint venture properties, and assumed the management of 84 franchise and managed properties.
Kenneth M. Woolley, Chairman and CEO of Extra Space Storage said: “The acquisition of Storage USA and the successful integration of the two companies has been positive for Extra Space Storage, our partners at Prudential Real Estate Investors and our shareholders. We acquired well-located, high quality properties, with the majority of them located in our current core markets. Now that we have owned them for a year, we believe we have been able to add value through our scalable technology systems and best-of-class operational and revenue management processes.”
The majority of the integration, which started immediately after the acquisition, was completed by December 31, 2005. The business processes and human resources are now merged into a single operational and management platform including technology, accounting and operational systems. “We are excited about what has been accomplished in the past year, and I believe we have started seeing the benefits of this transaction. The synergies that have been created by the acquisition, especially in the areas of operations, technology and revenue management, have positioned us well for the future,” said Mr. Woolley.