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July 15, 2021

Americana Partners proposes to takeover Westwood for $25 a share

By Verdict Staff

Americana Partners , a Houston-based RIA firm, has proposed to takeover publicly traded financial advisory and mutual fund firm Westwood Holdings Group for $25 a share in cash.

Westwood said it has in total received two unsolicited bids from Americana and is rejecting both as they ‘significantly undervalues Westwood relative to the company’s standalone plan’.

The firm also added that it is not certain about Americana’s ability to finance its acquisition bid.

Westwood president and CEO Brian Casey said: “Our hard work over the past few years, reducing costs and building a pipeline of opportunities, along with the investments we made in technology and other strategic initiatives are paying off for our stockholders as we believe Westwood is now on a more clear path to growth.

“We are very proud of the progress we have made and are even more confident in our ability to carry out our current plan and deliver long-term value for our stockholders.”

Americana made an all-cash offer last month to purchase Westwood, which oversees $15bn in assets, Reuter reported citing people familiar with the development.

The proposed deal is said to be part of the wealth manager’s plan to expand across Texas. Moreover, the firm sees potential in Westwood’s wealth and trust businesses.

According to the sources, Americana expects Westwood to perform better outside the public markets.

Americana’s bid came shortly after Westwood’s largest investor, James Pappas’ JCP Investment Management, started publicly pressurising the management and the board to look for alternatives for the firm, including a sale.

JCP owns 10.37% holdings in the firm. A representative for JCP declined to comment on the news.

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