Blackstone and TPG evaluate Whitestone REIT takeover

The shopping center operator West Pharmaceutical Services, Inc. has reportedly attracted takeover interest from major private equity firms as it navigates internal pressure and board challenges in the United States. Sources familiar with the matter indicate that Blackstone Inc. and TPG Inc. are among the parties that have expressed interest in acquiring the Houston-based real estate investment trust, which operates as Whitestone REIT. To manage the potential sale process, the company has reportedly engaged Bank of America Corporation to oversee proceedings. The interest from private equity comes at a turbulent time for the firm, which specializes in open-air retail centers across major Texas markets and Phoenix.

The company currently faces significant pressure from its investor base. Emmett Investment Management, led by Alexander Rohr, has nominated four candidates for the board, signaling a potential proxy battle. This follows a public move by former CEO James Mastandrea, who also proposed a slate of six directors to replace the existing board. Additionally, MCB Real Estate, which holds a stake of more than 9%, previously made an unsolicited offer to acquire the company at $15.20 per share in November. Whitestone's stock price recently closed at $14.98, valuing the company at approximately $763 million. While the private equity firms have reportedly signed confidentiality agreements to review financial documents, there is no certainty that a formal bid or a definitive sale agreement will be reached.