Macquarie acquires FPK for US$130m
Macquarie Group Limited (MQG) announced it had entered into an agreement to acquire US based specialist investment bank Fox-Pitt Kelton Cochran Caronia Waller LLC (“FPK”). Macquarie said the transaction consideration consists of US$130 million in equity value, plus US$16.7 million of long-term liabilities, less cash on balance sheet at financial close.
Macquarie said the acquisition would enhance its integrated offering to financial institutions around the world.
The company said two thirds of FPK’s executive staff are employed in the firm’s securities business, with the remainder in advisory, corporate broking and capital markets.
President & CEO of Macquarie Capital (USA) Inc, Tim Bishop, said the acquisition was the ideal way to expand the company’s financial institutions presence beyond the Asia-Pacific into North America and Europe.
“It is consistent with our focus on key industry sectors and adds financial institutions as a core specialty for Macquarie,” Mr Bishop said.
“We plan to develop and grow FPK’s valued specialist research, execution and advice and build their underwriting capacity.”
Global Head of Macquarie Securities Group, Roy Laidlaw, said FPK and Macquarie’s equity offerings in financial institutions were complementary and together would deliver a wider and stronger mix of products.
“The combination will take our combined FIG research offering to 765 stocks globally and double the stock coverage universe in our growing U.S. and European securities platforms,” Mr Laidlaw said.
The company said the impact on Macquarie’s regulatory capital surplus as a result of the acquisition is anticipated to be immaterial.
Macquarie expects closing to occur by the end of the fourth quarter of 2009, while the acquisition remains subject to regulatory approvals.
At the close of trade yesterday, Macquarie shares were trading at $58.79.