Amundi will acquire an 87.5% stake in money manager Kleinwort Benson Investors, with KBI management acquiring the remaining 12.5% stake, from financial services group Oddo & Cie.
The terms of the deal are not being disclosed, said an Amundi spokesman.
KBI has €7.6 billion ($8.6 billion) in assets under management, mainly in global equity strategies. North America clients represent 52% of AUM, following by Ireland and the U.K. at 26%; continental Europe, 14%; and Asia, 8%.
The deal is expected to close in the third quarter, and KBI will retain autonomy of its distribution, operating and portfolio management. CEO Sean Hawkshaw will remain in his role, Noel O’Halloran will remain as chief investment officer, and all employees are expected to stay with the firm, an Amundi news release said.
In March, Oddo & Cie purchased BHF-Bank, which was made up of BHF-Bank, Kleinwort Benson and KBI.
“This acquisition is perfectly in line with Amundi’s strategy presented at the time of our recent IPO,” CEO Yves Perrier said in the news release. “It will strengthen our offer with a complementary and well-performing equity expertise that will benefit our clients in Europe, Asia and the Middle East.” The deal is in line with Amunid’s financial criteria for acquisitions since it “will be immediately accretive to Amundi’s (earnings per share) and will comply with the target of an expected return on investment superior to 10% within three years,” the release said.
Added Mr. Hawkshaw: “We believe that the combination of Amundi as a majority shareholder and a meaningful stake held by key employees offers an ideal ownership structure to continue to develop the firm while allowing us to deliver the best possible investment returns and service for our clients globally.”
Amundi has €987 billion in assets under management.
Sandler O’Neill & Partners advised Oddo & Cie on the sale.