Boston-based asset management firm Callodine Group has signed a deal to buy investment management firm, Manning & Napier.
Callodine will pay $12.85 per share for Manning & Napier common stock, representing a 41% premium above the closing price on 31 March 2022.
The firm will also purchase the outstanding limited liability company interests in Manning & Napier Group from M&N Holdings for $12.85 per unit.
As part of the agreement, Manning & Napier CEO Marc Mayer will transfer a significant portion of his shares into the new private company. He will continue in his role.
The deal is expected to close in the third quarter of this year.
Following the transaction, Manning & Napier will de-register its shares with the US Securities and Exchange Commission and de-list its shares from the New York Stock Exchange.
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It will become a fully-owned subsidiary of Callodine.
The combination with Callodine is expected to provide Manning & Napier with capital resources, long-term stability, and additional investment capabilities required to drive its future growth.
Callodine founder and CEO James Morrow said: “Manning & Napier represents a best-in-class investment management firm that we are thrilled to welcome to the Callodine Group platform.
“Growing up in Rochester, NY and having previously been a shareholder of the Company after its IPO, we know this is a business with a long and proud tradition of delivering outstanding results for clients. We look forward to partnering with the current management team to continue to uphold that standard of excellence.”
Commenting on the deal, Mayer said that Callodine is a ‘natural fit’ for the firm ‘culturally and strategically’.
He added: “We view the combination with Callodine as providing significant benefits to all stakeholders. Manning & Napier has been relentlessly focused on client outcomes since our founding more than 50 years ago, and, under the umbrella of Callodine, we will be even better positioned to deliver meaningful outcomes for our clients over the long term.”