Man today announced the proposed acquisition of RMF for $833 million in cash and shares. * RMF is a provider of alternative investment products in Europe, with funds under management of $8.5 billion. It focuses on the institutional market, providing tailored solutions to clients, including dedicated style and bespoke funds. Man says RMF’s European focus will complement its existing strength in the US through Man-Glenwood and Man’s global private client business. The enlarged group will be the largest asset manager in the alternative investments market (excluding real estate and private equity), with $20 billion under management. Man believes the acquisition will increase its attractiveness to fund managers.
The acquisition is being funded by $250 million in cash from existing resources, the issue of 23.3 million Ordinary Shares issued to the vendors and $260 million in cash from a placing of new Ordinary Shares. The Board expects the financial impact of the acquisition and Placing to be broadly neutral to underlying earnings per share in 2003 and earnings enhancing in the following year. Merrill Lynch is acting as sole adviser, sole sponsor and joint broker with CSFB to the acquisition and Placing.
Harvey McGrath, Chairman of Man Group plc, commented:”This transaction represents a major step forward in the development of Man Group plc. The combination of Man and RMF significantly strengthens our position in the fast growing alternative investment market. RMF brings us further access to asset management capacity, diversifies our product range and provides added reach in distribution, particularly in the institutional arena. There is also a great cultural fit between the two businesses and significant opportunity to build on each other’s strengths.”