Focus Financial Partners Inc., a partnership of wealth-management firms, agreed to be acquired by affiliates of Clayton, Dubilier & Rice LLC in an all-cash transaction with an enterprise value of more than $7 billion.
Shareholders in New York-based Focus will receive $53 in cash per share, representing a premium of about 36% to the firm’s 60-day average price as of Feb. 1, the day before a potential transaction was announced, the company said in a statement Monday. Funds managed by Stone Point Capital LLC agreed to retain a portion of their investment in Focus and provide new equity financing as part of the deal.
CD&R and Stone Point said they agreed to the deal because of Focus’s competitive positioning in a multitrillion-dollar global industry. Focus, which has almost 90 firms in its partnership, acquires high-performing wealth-management firms that primarily serve high- and ultra-high-net-worth clients, and has a visible presence in the sector globally through its international partner firms, CD&R and Stone Point said.
“We are enthusiastic about the opportunity to partner with Focus to help grow and develop its exceptional partner firm network,” Dan Glaser, a CD&R partner, said in the statement.
The deal is expected to close in the third quarter, and Focus will cease to be a publicly traded company when the takeover is completed. The agreement provides for a 40-day “go-shop” period that expires April 8. A special committee of Focus’s board unanimously determined that the transaction is in the best interests of the company and shareholders, according to the statement.
This article was provided by Bloomberg News.