Last checked at 10 Nov 2008 07:01
10/11/2008
Titanium Asset Management Corp ('Titanium')
Acquisition of Boyd Watterson Asset Management LLC
- 4th Acquisition since Titanium listed on AIM
Titanium is pleased to announce that it has entered into a sale and purchase agreement to acquire 100% of the membership interests in Boyd Watterson Asset Management LLC ("BWAM"), an established US-based money management firm, from its parent company, Boyd Watterson Asset Management Holdings LLC.
BWAM, founded in 1928, is based in Cleveland, Ohio and as at 30 September 2008 had assets under management of approximately U$3bn. Its client base is largely institutional but also includes high net worth individuals and (through broker dealer contracts) retail clients. Its managed assets mainly omprise US fixed income securities and it also manages US and international equities on behalf of its clients.
Completion of the acquisition is expected to occur on or around 31 December 2008.
The initial consideration payable (which may vary according to the rate of client retention) is expected to be U$7.5 million in cash. 250,000 shares of Titanium common stock will be issued to BWAM employees at or after completion. Up to a further U$8.0million is payable in early 2011 in a combination of cash and stock depending on BWAM's annualised revenue run-rate as at 31 December 2010.
Commenting on the acquisition Nigel Wightman, Chairman and CEO of Titanium, said "We are delighted that BWAM has become another member of the Titanium group of companies. It has skilled investment professionals, an excellent client base and a strong new business pipeline. It is very complementary to the three businesses we already own. Even in difficult market conditions we are pleased that we continue to be able successfully to execute our business strategy of acquiring and integrating asset management companies."
Brian Gevry, CEO of BWAM, comments "We are very excited to be joining Titanium. We have known many of the senior Titanium executives for a considerable period and believe that we can work with them to further extend the scale and scope of Titanium's business."
Notes to editors.
Titanium
Titanium is listed on the London AIM market having successfully raised U$120m through an IPO in June 2007. It has already acquired three businesses - Wood Asset Management Inc, Sovereign Advisers LLC and National Investment Services Inc. At 30/9/08 combined assets under management were U$5.7billion.
BWAM
BWAM was acquired by its current management in a MBO in 2007 and currently has 22 employees. In the year ended 31 December 2007, BWAM earned management fees of US$5,932,000 and generated EBITDA of US$1,085,000.
For further information please contact:
For further information:
Titanium Asset Management Corp.
Nigel Wightman, Chairman and CEO +44 20 7822 1881 or + 44 7789 277849
Seymour Pierce Ltd
Jonathan Wright +44 20 7107 8000
BWAM
Brian Gevry, Chief Executive Officer +1 216-771-3450
Penrose FinancialGay Collins +442077864882 or +44 7798 626 282
titanium@penrose.co.uk