Texas A&M closes on acquisition of Texas Wesleyan

Texas A&M University formally purchased Texas Wesleyan School of Law on August 12, renaming it the Texas A&M University School of Law. Classes started on Aug. 19 under the new name.

The acquisition had been announced a year ago, but had to wait for ABA approval. In that time period, the two institutions renegotiated the terms of the deal.

“In creating the Texas A&M University School of Law, we are finally expanding the Texas A&M brand into the field of law with a focus on new areas of growth like patents and commercialization,” said John Sharp, Texas A&M University System Chancellor. “This long-sought entry into the field of law by the state’s first public institution of higher learning, with its land-grant university perspective for innovative service to the public, will have a profound impact on the future of Texas.”

Texas A&M paid Texas Wesleyan $31.4 million at the closing and will pay an additional $43.2 million between 2014 and 2017 for the property.

The two institutions also entered into a five-year “triple net” lease regarding the property on which the law school is situated, meaning the university will pay $1.4 million the first year, $1.7 million annually for four years ($6.8 million), $6 million annually for 4 years ($24 million) and a final payment of $11 million in 2017, at which time it would own the land.

The original deal had a net value of more than $108 million, but only $20 million at closing.