Blackstone Funds Acquire Friends Life Wealth Management Units

July 18, 2014

On July 11, 2014, Friends Life Group Limited, a London-based life assurance firm, announced the disposal and proposed share buy-back of the entire share capital of its wholly-owned subsidiaries, Lombard International Assurance S.A. and Insurance Development Holdings AG, to funds managed by Blackstone Group LP for an initial consideration of £317 million.


On July 11, 2014, Friends Life Group Limited announced the disposal and proposed share buy-back of the entire share capital of its wholly-owned wealth management subsidiaries, Lombard International Assurance S.A. and Insurance Development Holdings AG, to funds managed by Blackstone Group LP. Blackstone, a New York-based private equity firm, with approximately $300 billion in assets under management, will pay an initial consideration of £317 million for the two wealth management units, with the possibility of up to an additional £39 million in contingent payments. Of the total consideration, Friends Life plans to return £261 million to shareholders by way of a buy-back of Friends Life’s shares, which is equal to the upfront cash consideration and estimated interest. Friends Life is a London-based life assurance company. Based in Luxembourg, Lombard provides long-term wealth management services to high and ultra-high net worth investors across Europe, and in certain Asian and Latin American markets. The transaction, which is subject to anti-trust and regulatory approvals, is expected to be completed in the second half of 2014.

To read the press release, please click here.

 

 


Categories

Investment Manager M&A, Transactions