Pendal Group, the parent of UK-based fund manager J O Hambro Capital (JOHCM), has agreed to acquire Virginia-based value investment manager Thompson, Siegel & Walmsley (TSW) in a $320m deal.
Founded in 1969, TSW mainly operates in long-only equity.
The company, whose investment capabilities span across international value equities, US equities, and fixed income, manages $23.6bn in assets.
The acquisition will more than double the assets of Pendal’s US business, from $21.1bn to $44.7bn.
Pendal Group CEO Nick Good called TSW a ‘natural strategic and cultural fit’ to JOHCM and the broader Pendal business.
Good said that the deal would create immediate value and facilitate the company’s growth opportunities in the US market.
He added: “Both businesses have solid flow momentum and strong performing, high conviction investment strategies. TSW is also highly complementary to our business, with almost no overlap of investment strategies or clients.”
All TSW employees will be retained, while its investment strategies will continue to run under the TSW brand.
Following the close of the deal, TSW CEO John Reifsnider will lead Pendal’s combined US business as the CEO.
Reifsnider will also become a member of Pendal’s Global Executive Committee.
Commenting on the development, Good said: “John is an outstanding leader and the right person to head the combined US business. He will continue to drive the positive momentum that is evident in both companies and seize the new growth opportunities we see ahead of us.”
JOHCM appointed Good as the CEO of its US business in 2019. He was promoted as Pendal Group CEO this March.