London May 4 2023: Liontrust, the specialist fund management group, today announces that it has conditionally agreed to acquire the entire issued share capital of GAM Holding AG ("GAM"), a global investment management group (the "Proposed Acquisition"), by way of public exchange offer with ordinary shares of 1 pence each in the capital of Liontrust ("Liontrust Shares" , and each individually a "Liontrust Share") to be issued to GAM shareholders for a total consideration representing a valuation of the entire issued share capital of GAM of CHF 107 million (£96 million) (the "Consideration"), equivalent to CHF 0.6723 per publicly held registered shares (Namenaktien) of GAM with a nominal value of CHF 0.05 each ("GAM Shares", and each individually a "GAM Share"), on completion of the Proposed Acquisition ("Completion").
GAM is a global investment manager that is listed in Switzerland and has, within its Investment Management division, assets under management and advice ("AuMA") of CHF 23.3 billion (£20.9 billion) as at 31 March 2023. GAM has global distribution with offices in 12 countries and is geographically diverse with clients in almost every continent. It has 3,500 clients globally, of which around 2,700 are based in Europe.
The Consideration will be satisfied by the issue of 9.4 million new Liontrust Shares, and it is expected that GAM shareholders will own approximately 12.6 per cent. of the combined group on Completion;
The Proposed Acquisition is expected to complete in the 4th quarter of 2023.
John Ions, Chief Executive of Liontrust, said: "This is a significant acquisition that accelerates the growth of Liontrust through enhancing our distribution globally, product capability and investment talent.
Liontrust and GAM are both client centric businesses that thrive on providing solutions and first-class service. The enlarged company will provide the platform from which to deliver this to a broader client base.
We have been impressed by the quality of the investment teams at GAM. There is commonality in that Liontrust and GAM are both committed to independent and distinct processes for each of their investment teams. Liontrust specialises in providing an environment in which investment teams can thrive, including through the excellence of our sales and marketing, a robust business infrastructure, strong risk and compliance culture, and the stability that comes with financial strength.
Liontrust is committed to the international business and client relationships that GAM has built. We are especially pleased to have such a strong operation in Switzerland which has been so important to GAM's heritage.
The quality of the investment teams across the different asset classes, the talent in the business and the breadth of the distribution at GAM, combined with Liontrust's existing investment capability and strong brand, sales, marketing, and communications, gives me great confidence we will grow the enlarged business to create long-term value.
Liontrust and GAM will work together to provide a seamless transition for clients and enhancing the service provided in the future."
Peter Sanderson, CEO of GAM, said: "I am delighted we have agreed this transaction with Liontrust. Our distinctive approaches to investing are closely aligned, and this combination represents the best opportunity for our talented team of professionals at GAM to continue to provide clients with high conviction active investment strategies. The resulting business will have a strong balance sheet, a broader array of excellent investment products, and a global distribution footprint from which to deliver growth that our shareholders can participate in the future."
GAM is a Swiss-based independent investment manager, formed in 1983 with the aim to provide access to great investment talent. GAM's Investment Management division has grown to AuMA of CHF 23.3 billion (£20.9 billion) as at 31 March 2023, using active strategies across discretionary and specialist solutions. GAM has a well-regarded product range, with leadership in fixed income and multi-asset products, equating to 68% of its Investment Management division AuMA, as well as strength in Equities, Alternatives and Wealth Management.