Aberdeen Asset Management agreed today to buy most of Deutsche Bank's U.K.-based asset management operations, as well as its Philadelphia-based fixed-income unit, for about $465 million. Aberdeen will acquire Deutsche Asset Management's U.K.-based institutional equity, fixed-income, global equity and multiasset businesses as part of the deal. The units going to Aberdeen had a combined $81 billion in assets under management as of May 31.
"This is a transformational acquisition for Aberdeen. We are acquiring some world-class businesses that will substantially increase our scale and diversify our revenue streams … We are also well placed to improve the performance of these businesses working in conjunction with the high-quality teams who will be joining the group," Martin Gilbert, Aberdeen CEO, said in a statement. Mr. Gilbert could not be reached for comment.
Sue Mullin, Aberdeen director of institutional business in the Americas, said the acquisition will provide the firm with "very complementary pieces," in the U.S. "The most important piece for us in the U.S. is the fixed business …," said Ms. Mullin. "While we have had some fixed-income offerings, we have not had the scale or the breadth for us to gain significant institutional consideration in the U.S."
DeAM's U.K.-based hedge fund and real estate businesses, as well as its Philadelphia-based high-yield business, will not be included in the sale, according to a news release from Deutsche. Kevin Parker, global head of DeAM, could not be reached for comment. In a news release, Mr. Parker said the objective of the sale is "to create a stronger, more focused DeAM business that can provide greater value to our clients and shareholders."
DeAM's London and Philadelphia-based fixed-income businesses will be managed by Aberdeen "as one integrated global fixed-income business," according to a statement from Aberdeen. Steve Ilott, DeAM's head of fixed income in London, will become Aberdeen's head of fixed income and lead the two fixed-income units.
The deal is expected to close at the end of the September. JPMorgan Cazenove is Aberdeen's financial adviser, broker and sponsor, and Bridgewell Securities is co-broker. Hawkpoint Advisors assisted Deutsche on the transaction..