Teton Advisors agreed to acquire small- and midcap value equity manager Keeley Asset Management Corp. from private equity firm TA Associates, said Nicholas F. Galluccio, president and CEO of Teton.
Financial terms of the deal were not disclosed. The deal is expected to close in the first quarter of 2017.
Upon closing, the acquired firm will be renamed Keeley Teton Advisors and will become a wholly owned subsidiary of Teton Advisors. The newly formed Keeley Teton will keep all key Keeley employees and retain KAMCO’s office in Chicago. The combined firms will create an organization with $4 billion in actively managed assets.
“We wanted to keep the organization intact, so there would be no change to the people, process or philosophy of investing,” Mr. Galluccio said in a phone interview. “And that is why we were the most natural partner for them.”
Upon closing, Kevin Keeley, president of KAMCO and son of the late founder John L. Keeley Jr., will become executive chairman of Keeley Teton. Robert Kurinsky, KAMCO’s chief financial officer, will be chief operating officer of Keeley Teton.
As of Sept. 30, Teton had about $1.5 billion in assets under management, while KAMCO had about $2.5 billion.