Nicholas Schorsch's RCS Capital (RCAP) announced it will buy Cole Capital from sister company American Realty Capital Properties for $700 million, so Cole can use the company’s wholesale broker/dealer and expand RCAP’s distribution platform. ARCP will act as sub-advisor to Cole’s non-traded net lease REITs. RCAP's stock was up 7 percent as of 12:30 p.m. eastern time on the news.
In October 2013, American Realty Capital and Cole Real Estate Investments agreed to merge in a $11.2 billion deal. Under the terms of the deal, Cole became a wholly owned subsidiary of ARCP.
RCAP will pay $200 million in cash, $300 million in seller debt and $200 million in common stock for Cole. The firm expects the deal to add $0.51 a share to 2015 adjusted net income.
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