Henderson has announced to the stockmarket it is to acquire the entire stock capital of Gartmore for an estimated £335m.
The deal, which Henderson says “significantly enhances its presence in UK retail asset management”, will see the enlarged group’s assets under management climb to £78 billion.
Based on the closing price of 138.2p per Henderson share on January 11, 2011, being the last business day prior to the announcement, the acquisition values each Gartmore share at 92.1p and values the issued share capital of Gartmore at approximately £335.3m.
Gartmore shareholders will hold approximately 22.5 per cent of the enlarged share capital of Henderson immediately following completion of the acquisition.
The deal, which is subject to regulatory and Henderson and Gartmore shareholder approval, would increase Henderson’s AUM in absolute return products to over $6 billion.
Henderson has also confirmed that a significant number of fund managers have already agreed to join Henderson. These include the likes European manager John Bennett, multi-manager Tony Lanning and emerging markets fund manager fund manager Chris Palmer. Henderson says that the fund managers that have agreed to join represent 84 per cent of assets under management.
Henderson chief executive Andrew Formica says: “Its recent travails should not overshadow the fact that Gartmore is one of the best known firms in UK fund management and its assets are performing well,”
“By bringing across fund managers and integrating the business onto our own platform we will be able to enhance margins significantly. We will also improve our offering to both sets of clients by expanding our product range, for instance in absolute return.
“The combined business will be one of the largest UK retail fund managers. I am, therefore, confident that it will create significant value.”
Subject to conditions being satisfied, the acquisition is expected to take three months to be completed.