Tikehau Capital agreed to acquire a 100% stake in ACE Management in a deal expected to close before the end of the year, a spokeswoman for the French private equity firm said Wednesday.
With €14.8 billion ($17.1 billion) in assets under management, Tikehau will boost its exposure to aerospace, defense and cybersecurity sectors by adding ACE's funds, which run €440 million.
The price to be paid for the business, which was not disclosed, was based on an enterprise value for ACE of €6.5 million. Up to 30% of the price of the acquisition will be paid in the form of newly issued 104,231 Tikehau shares in connection with a contribution in kind, with the balance to be paid in cash, Tikehau said.
"With this acquisition, we are pursuing the implementation of our strategy, by accelerating our development in the private equity industry, and establishing our expertise in a buoyant sector," said Antoine Flamarion, co-founder of Tikehau, in a news release. "ACE Management's sector-based approach is highly complementary to Tikehau Capital's business know-how."
Thierry Letailleur, chairman of ACE's management board, added in the news release that the deal with Tikehau Capital "will strengthen our position in the private equity market and enable us to attract new investors into our entrepreneurial adventure which began 20 years ago. Transactions so far this year have once again demonstrated the relevance and robustness of ACE Management's sector-based funds model, which continues to remain focused on both the industry sector and innovation."
An ACE spokesman could not be reached for a comment.