Jacksonville-based Regency Centers Corp. announced a deal Monday to acquire Equity One Inc., which will create a shopping center powerhouse with 429 properties across the country and a market value of $15.6 billion.
The merged company’s headquarters will remain in Jacksonville operating under the Regency name and Regency Chairman and CEO Hap Stein will remain in those roles.
Other top Regency executives also will remain in place, including President and Chief Financial Officer Lisa Palmer.
Equity One Chairman Chaim Katzman will become non-executive vice chairman of Regency.
The merger will be done through an exchange of stock, with current Regency stockholders owning about 62 percent of the combined company.
“Shareholders of both companies are poised to benefit from an expanded presence in top metro areas, a higher organic growth profile, expanded development and redevelopment program, and greater tenant diversity,” Stein said in a news release.
Regency, which traces its roots to a company founded by Stein’s parents more than a half century ago in Jacksonville, operates 307 retail properties across the country, mainly grocery-anchored shopping centers.
New York-based Equity One owns 122 properties, including several in Northeast Florida.
Its two largest area properties are along Florida A1A in Jacksonville Beach: the 313,332-square-foot South Beach Regional center, with anchors including Trader Joe’s and Home Depot, and the 148,673-square-foot Pablo Plaza, which is undergoing a major renovation that will eventually include a Whole Foods store.
“Equity One shareholders are receiving an attractive valuation for the company’s assets, and have the opportunity to participate in the future growth prospects of a powerful new company led by a best-in-class management team,” Equity One CEO David Lukes said in the news release.
The companies did not say if Lukes will have a role in the merged company.
The merger agreement calls for Equity One stockholders to receive 0.45 shares of Regency for every Equity One common share they own.
The companies hope to complete the merger in the first quarter of 2017 or early in the second quarter.