Credit Suisse agreed to sell most of its traditional asset management business in the U.S., Europe and Asia Pacific to Aberdeen Asset Management for an estimated £250 million ($362 million), according to news releases from both companies.
In return, Credit Suisse will take a nearly 25% stake in Aberdeen.
The final deal price will be based on run-rate revenues at the closing, expected June 30. The business being sold had 75 billion Swiss francs ($71 billion) in assets under management as of Nov. 30, with run-rate revenues of 220 million Swiss francs. In Switzerland, Credit Suisse will retain its asset management business, but the management of a small number of Swiss-domiciled funds will transfer to Aberdeen, the release said. Credit Suisse will also continue to operate its asset management business in Brazil, the release said.
In its release, Aberdeen said the acquisition would give it greater scale in some markets, such as the U.K., Switzerland and Japan; greater access to Credit Suisses distribution networks; and significant earnings enhancement.
This transaction fits perfectly within our strategy, a key part of which has been to make earnings-enhancing acquisitions which give the business critical mass in our core competencies, complementing our organic growth, Aberdeen CEO Martin Gilbert said in the release.
Spokesmen at both companies could not be immediately reached by press time for further details.
JPMorgan Cazenove is advising Aberdeen on the deal. It was not known if Credit Suisse used an adviser.