KKR Inks ~$1.4B Deal For Australian Company Perpetual's Corporate Trust And Wealth Management Units: Details

Zinger Key Points
  • KKR acquires Perpetual's wealth management and corporate trust businesses for AU$2.175 billion.
  • Deal executed through Scheme of Arrangement; Perpetual CEO Rob Adams retires after strategic review.

KKR & Co. Inc. KKR inked a deal to acquire Perpetual’s wealth management and corporate trust businesses for AU$2.175 billion (~$1.43 billion).

KKR will acquire the businesses through a Scheme of Arrangement (Scheme), and net proceeds will be returned to shareholders.

The proceeds will be determined after paydown of Perpetual Group debt, along with separation and transaction costs and including customary business-specific net debt adjustments at completion. 

Perpetual also announced the retirement of its CEO and Group Managing Director Rob Adams.

The deal came 16 months after Perpetual acquired smaller fund manager Pendal in a deal worth $1.6 billion and is now being demerged with KKR buying the corporate and wealth management units, reported Reuters.

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Partner and Co-Head of KKR Australia, David Lang, said, “It is a privilege to be working with Perpetual on today’s transformational announcement and we thank the Board of Perpetual for their significant trust in KKR. We have developed important relationships with the Wealth Management and the Corporate Trust management teams and will invest behind their strategic ambitions of being two independent standalone businesses.”

This week, KKR formed strategic JV with Healthcare Realty Trust to invest in medical outpatient buildings, starting with 12 properties.

As of the quarter-end, KKR’s cash and investments stood at $14.6 billion.

Investors can gain exposure to the stock via Northern Lights Fund Trust IV FMC Excelsior Focus Equity ETF (FMCX) and EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF (LBO).

Price Action: KKR shares are up 0.02% at $99.56 at the last check Wednesday.

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