Alexander & Baldwin to go private in $2.3B definitive merger agreement

Alexander & Baldwin — owner, operator and developer of high-quality commercial real estate in Hawaiʻi, including The Shops at Kukui‘ula in Poʻipū and Hokulei Village in Līhuʻe — recently announced it entered into a definitive merger agreement.

It’s a joint venture formed by MW Group and funds affiliated with Blackstone Real Estate and DivcoWest — collectively, the “Investor Group” — will acquire all Alexander & Baldwin outstanding common shares for $21.20 per share in an all-cash transaction with an enterprise value of approximately $2.3 billion, including outstanding debt.

As a result of this transaction, Alexander & Baldwin will become a private company.

The commercial real estate firm is the largest owner of high-quality, grocery-anchored shopping centers in the Aloha State.

The company’s portfolio consists of about 4 million square feet of commercial space, including 21 retail centers, 14 industrial assets and four office properties, as well as fee interests in 146 acres of ground lease assets.

“For 155 years, [Alexander & Baldwin] has grown alongside Hawaiʻi, shaped by the people, values and communities that define these islands,” said Alexander & Baldwin President and Chief Executive Officer Lance Parker in a release about the merger. “Today, we are taking an important step toward our long-term vision for [Alexander & Baldwin] as stewards of Hawaiʻi’s premier commercial real estate.”

Parker said his firm will have greater capacity to serve its tenants and communities as a private company supported by the deep real estate expertise and experience of its new ownership group.

“In our next chapter, we will continue focusing on real estate that supports the daily lives of residents, overseeing our properties with care and remaining steadfast in our role as partners for Hawaiʻi,” Parker said.

Chairman of the Alexander & Baldwin Board of Directors Eric Yeaman said the board is confident the merger is in the best interests of all the company’s stakeholders, delivering a substantial cash premium for shareholders and long-term benefits for its valued employees, tenants and communities.

“We’re pleased to reach this agreement, which delivers significant, immediate and certain value to our shareholders while strengthening [Alexander & Baldwin’s] ability to serve the diverse needs of communities across Hawai’i,” Yeaman said in the merger release.

The Investor Group is aligned with the following principles to further the company’s vision for building a better Hawaiʻi:

• Maintaining Alexander & Baldwin’s strong local focus: Following the closing of the transaction, Alexander & Baldwin will retain its name, brand and Honolulu headquarters.
• Continued leadership from local team: The company will continue to be led by a Hawaiʻi-based team and is committed to strengthening the relationships and community connection that have driven its long-term success.
• Enhancing existing portfolio of properties: Alexander & Baldwin will continue to maintain its properties at high standards of quality for its tenants and community members. Investors intend to invest more than $100 million across the real estate company’s portfolio to enhance the properties and reinforce their essential role in the communities they serve.

“As a Hawaiʻi-grown company founded over 35 years ago, we have seen firsthand the community contributions and lasting value that Alexander & Baldwin has created across generations,” said MW Group Chief Executive Officer Stephen Metter in the company release. “We look forward to supporting the company’s legacy and magnifying our collective impact on the communities we serve.”

Blackstone Real Estate has a long history of responsible ownership in Hawaiʻi, including iconic hospitality properties such as Grand Wailea; The Ritz-Carlton Maui, Kapalua; Turtle Bay; and Hilton Hawaiian Village, as well as retail property Pearlridge Center and high-quality rental housing on Oʻahu.

“We’re excited to reach this agreement, which deepens our commitment to Hawaiʻi and our long-standing support for its local businesses,” said Blackstone Co-Head of Americas Acquisitions David Levine in the release. “Our approach has always centered on operating responsibly and creating new opportunities for community members, including the more than 9,000 jobs created and supported by our investments in Hawaiʻi.”

Levine added that Blackstone has a deep appreciation for what the Alexander & Baldwin management team built and looks forward to working together.

“Alexander & Baldwin has built an outstanding portfolio and we look forward to working with our partners and the company to help continue its success,” said DivcoWest Head of Strategic Investments Caleb Cragle in the release.

Under the terms of the agreement, Alexander & Baldwin shareholders will receive $21.20 in cash per share of Alexander & Baldwin common stock they own, a 40% premium to the real estate firm’s closing stock price Dec. 8, the last full trading day prior to the transaction announcement.

The transaction — unanimously approved by the Alexander & Baldwin Board of Directors — is expected to close during the first quarter of 2026 and is subject to customary closing conditions including approval by the company’s shareholders.

Alexander & Baldwin also announced that its board of directors approved a fourth quarter 2025 dividend of $0.35 per share. The dividend is payable Jan. 8, 2026, to shareholders of record as of the close of business Dec. 19.

Under the merger terms, the per-share consideration shareholders will receive at the closing of the transaction will be reduced to reflect this dividend.