F&C Asset Management plc announced that it has reached a conditional agreement to acquire the Thames River Capital group in a deal as large as £53.6 million. The conditional agreement includes an initial consideration of £33.6 million and an additional £20 million for conditional consideration. The Board of F&C sees the acquisition as an opportunity to advance the group’s development of a diversified, multi-specialty asset management firm through both organic growth and opportunistic acquisitions.
F&C anticipates that the acquisition will create value for shareholders by enhancing earnings, broadening the group’s range of specialist products, and increasing cross-selling opportunities.
According to F&C’s press release, the acquisition’s initial consideration will be funded “through a combination of a cash placing of F&C ordinary shares equal to approximately 5% of F&C’s issued share capital, F&C’s existing cash resources and new indebtedness of £15 million.” F&C will acquire an economic interest in Thames River’s profits from management and performance fees, but F&C will ensure that Thames River retains its unique investment approach and culture.
“Following our successful acquisition of REIT Asset Management in 2008, this acquisition represents an important milestone in the development of our multi-specialist business model,” stated F&C CEO Alain Grisay.
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