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 percent to the firm’s 60-day average price as of February 1, the day before a potential transaction was announced, the company said in a statement. 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.
