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Perpetual

  •   27 July 2020
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Perpetual to acquire a 75% interest in US-based asset manager, Barrow Hanley and undertake an Equity Raise to provide funding towards the acquisition and future growth

  • Barrow, Hanley, Mewhinney & Strauss, LLC (“Barrow Hanley”) is a US-based global investment management business with approximately US$44.1 (A$63.9) billion in FUM across US, global, and emerging markets equities, and fixed income strategies.
  • A$465 million transformational Acquisition to accelerate global growth, diversify investment capabilities and establish a platform to build world class distribution capabilities.
  • The Acquisition is an important step in Perpetual’s strategy to deliver sustained, quality growth by adding world class investment capabilities and establishing a global footprint for Perpetual Investments.
  • Expected to generate Underlying EPS accretion of more than 20% on an annualised basis from the date of completion1.
  • Completion of the Acquisition expected by end of first half FY2021, subject to customary regulatory and other approvals.
  • Acquisition to be funded from proceeds of an equity raise (the “Offer”), combined with a new debt facility and available cash.
  • The new fully underwritten debt facility of A$284 million (US$195 million) to have gearing levels of 1.1 and a pathway to reduce to below 1.0 within 12 months of completion, and to zero within five years.
  • The Offer comprises a fully underwritten A$225 million institutional placement and non-underwritten Share Purchase Plan (“SPP”) targeting to raise up to A$40 million.
  • Balance of the Offer proceeds, following the Acquisition, will be used to provide greater financial flexibility in the context of COVID-19 to continue to execute Perpetual’s strategy, including pursuing other identified growth opportunities.

Read more...

 

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