Affiliated Managers (AMG) Closes Acquisition Deal With Forbion
Affiliated Managers Group, Inc. AMG completes the acquisition of a minority equity interest in Forbion Group Holding B.V. The terms of the deal have not yet been disclosed.
Being a venture capital and growth equity firm with €3 billion in assets under management, Forbion focuses on investing in high-quality life sciences companies across all stages of their development.
It provides capital and expertise to life sciences companies, enabling the development of therapeutics that can impact the future of medicine.
Now, Forbion partners will continue to hold a significant majority of the equity of the firm and direct its day-to-day operations.
At the time of the deal announcement in June, Jay C. Horgen, president and CEO of AMG, stated, “We are very pleased to partner with Forbion, a leader in life sciences investing – a sector with robust client demand trends and meaningful societal impact. Our partnership with Forbion broadens our participation in both private markets and the life sciences sector, further diversifying our business and enhancing our long-term growth prospects.”
Sander Slootweg, co-founder and managing partner of Forbion, said, “We are excited to partner with AMG, as its unique approach enables us at Forbion to preserve our investment independence and operational autonomy. Our entrepreneurial and investment-centric culture has been critical to our success, and with our respective firms’ long-term partnership orientation, Forbion and AMG share a deep cultural alignment.”
Notably, Affiliated Managers, with its strong balance sheet and liquidity position, has considerable capability to invest in other companies and generate meaningful growth through new investments.
In October 2022, the company sold its minority interest in Baring Private Equity Asia to EQT AB and received $240 million in cash and 28.68 million EQT ordinary shares. This significantly bolstered its “financial flexibility to allocate capital across AMG’s unique opportunity set to the areas of highest growth and return.” Hence, it made a minority investment in a new affiliate, Peppertree Capital Management, a leading communications infrastructure firm.
AMG is expecting several “high-quality investment opportunities” to emerge and is targeting investments in alternatives and global strategies, given the strong investor preference for the same.
Over the past six months, shares of AMG have lost 21.2% compared with the industry’s decline of 5%.
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Currently, Affiliated Managers carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Growth Efforts by Other Finance Firms
Glacier Bancorp, Inc. GBCI entered a definitive agreement to acquire Community Financial Group, Inc. to bolster its presence in the growing market of Eastern Washington. Community Financial Group is the bank holding company for a leading Eastern Washington community bank — Wheatland Bank — headquartered in Spokane.
Per the agreement terms, shareholders of CFGW will receive 1.0931 shares of Glacier stock for each CFGW share they hold upon closing of the transaction, which is expected to materialize in the fourth quarter of 2023, subject to regulatory approval, CFGW shareholder approval and customary closing conditions.
Banc of California, Inc. BANC and PacWest Bancorp PACW agreed to combine in an all-stock merger transaction. Per the terms of the agreement, which has been approved by the boards of both companies, PacWest will merge into Banc of California, and Banc of California, N.A. will merge into Pacific Western Bank.
The combined holding company and bank will operate under the Banc of California name and brand after the merger is closed. The deal is subject to regulatory nods and approval by the stockholders of both companies, with the closing expected in late 2023 or early 2024.
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