UK asset manager Henderson Group is to expand in the US following the merger with America’s Janus Capital Group.
The merger will create an asset manager co-headed by the firms’ current chief executive officers and with assets under management of more than $320 billion (€284.5 billion).
The business, worth $6 billion and listed in London, will be known as Janus Henderson Global Investors plc, and the group will apply for admission to trade on the New York Stock Exchange as its primary listing, and will retain Henderson’s existing listing on the Australian Securities Exchange.
The merger is expected to close in the second quarter of 2017 and will be effected via a share exchange with each share of Janus common stock exchanged for 4.7190 newly issued shares in Henderson. Henderson and Janus shareholders are expected to own approximately 57% and 43% of the shares outstanding, respectively.
Andrew Formica is the chief executive of Henderson and Dick Weil is currently his Janus counterpart.
Weil said: “Janus brings a strong platform in the US and Japanese markets, which is complemented by Henderson’s strength in the UK and European markets. The complementary nature of the two firms will facilitate a smooth integration and create an organisation with an expanded client-facing team and product suite, greater financial strength, and enhanced talent, benefiting clients, shareholders and employees.”
Janus’ largest shareholder is Japanese insurance company Dai-ichi Life and has committed to supporting the merger.
The firms say the merger has “minimal overlap” of investment strategies and clients, while increasing distribution strength and coverage in key markets, including the US, Europe, Australia, Japan and the UK, as well as a “growing presence” in the Asia-Pacific region, the Middle East and Latin America.
Janus Henderson Global Investors’ assets by region on a pro-forma basis will be about 54% US, 31% Europe, Middle East and Africa, and 15% pan-Asia.
The merger also results in a company with 2,300 employees in 29 locations around the world.
The board of directors will comprise equal numbers of Henderson and Janus directors, with Henderson chairman Richard Gillingwater becoming chair of the combined board and Janus’ Glenn Schafer becoming deputy chair.
A newly appointed executive committee to manage the company will include:
- Janus’ head of investments, Enrique Chang, who will become global chief investment officer.
- Henderson’s global head of distribution, Phil Wagstaff, who will become global head of distribution
- Henderson’s executive chairman pan-Asia, Rob Adams, will become head of Asia Pacific
- Janus’ chief financial officer, Jennifer McPeek, will become chief operating and strategy officer.
Janus’ subsidiaries, Intech and Perkins will be unaffected by the merger.
The combined group had revenue of more than $2.2 billion and underlying earnings before interest, taxes, depreciation and amortisation about $700 million for the year ended December 31, 2015.
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