Affiliates of private equity firm Clayton, Dubilier & Rice have agreed to acquire New York Stock Exchange-listed Focus Financial Partners in an all-cash deal valued at more than $7bn (£5.82bn, €6.61bn).
It comes several weeks after International Adviser reported that the two groups were in negotiations over a potential deal.
The transaction will see Focus Financial become a private company. Stockholders of Focus will receive $53 per share as disclosed by the company.
Funds managed by Stone Point have agreed to retain a portion of their investment in Focus and provide new equity financing as part of the proposed transaction. The transaction is expected to close in the third quarter of 2023.
Rudy Adolf, founder, chief executive and chairman of Focus, said: “This transaction represents an important evolution in the resources we will have to invest, enabling us to increase the value we deliver to our partners and their clients.
CD&R partner David Winokur added: “Focus represents an outstanding collection of leading registered investment advisers and business managers, and our investment is predicated on having greater financial and operating flexibility as a private company in order to support and drive collaboration amongst these entrepreneurial partners.”
Focus Financial has a global reach with more than 85 advice partner firms across the US, Australia, Canada, Switzerland and the UK.
In March 2021, US-headquartered wealth firm Focus Financial teamed up with global conglomerate Hinduja Group to launch a multi-family office Beryllus Capital with operations in London, Geneva and Singapore.
