Commerzbank has reached agreement with Jupiter’s management over the sale of its UK asset management subsidiary, Jupiter.
As a result of the agreement, Jupiter’s senior management will complete a management buyout of the firm by July 2007, supported by TA Associates, a buyout and private equity firm, at a sale price exceeding 740 million. The transaction is subject to regulatory approval, and will lead to an extraordinary capital gain for Commerzbank in the region of 300 million Euros, says Commerzbank.
“The sale of Jupiter demonstrates Commerzbank’s continued delivery against its strategy to focus on its core markets,” says Achim Kassow, Member of the Board of Commerzbank AG and responsible for its Private Client and Asset Management business. “Following a thorough and detailed review of all the options, we concluded that a management buyout was the best possible option for all parties.”
“Partnering with TA Associates, who have considerable experience in the asset management sector, creates the right structure for the next stage of our growth,” comments Edward Bonham Carter, Jupiter’s Joint Group Chief Executive. “Jupiter’s senior management has committed significant personal assets to take joint ownership of the business with TA, with employees also participating in equity ownership. This creates an unparalleled degree of certainty for our clients during the coming years as we seek to extend our share of existing, and new, markets.”
“We have known the Jupiter team for several years and have long admired the company as one of the most successful fund management groups in the UK,” adds Michael A.R. Wilson, Managing Director at TA Associates. “This is TA’s tenth investment in the global asset management sector and we are delighted to be backing Edward and his team to build further value in Jupiter.”