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April 10, 2019

Foresters Financial offloads US assets to Macquarie and Cetera

Foresters Financial has agreed to divest its US businesses to Macquarie Investment Management and Cetera Financial Group.

Macquarie will purchase Foresters’ asset management business assets in the US, including First Investors mutual fund business.

Under the agreement, Macquarie will take over nearly $12.3bn in assets.

The purchased assets will be incorporated in the firm’s Delaware Funds offering.

The deal is expected to complete in the final quarter of this year, subject to shareholder approval.

At the same time, Macquarie will be responsible for managing part of Foresters’ general account supporting its life insurance operations.

Meanwhile, Cetera will assume ownership of Foresters’ US broker dealer and advisory business assets.

Around 500 independent financial advisers of Foresters would be invited to move to Cetera as part of the deal.

Cetera will also have the provision to secure leases for more than 40 Foresters branches in the US.

The acquired business will operate as a distinct unit of Cetera.

The transaction, whose financial terms were not revealed, is expected to be wrapped up in the second quarter of 2019.

The deal is currently pending regulatory nod.

Foresters president and CEO Jim Boyle said: “With the announcement of today’s transactions, we will focus on innovation, new product development and the growth of our brand and market share in our core life insurance business.”

 

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