Focus Financial to be acquired by Clayton Dubilier in $7 billion deal

Focus Financial to be acquired by Clayton Dubilier in $7 billion deal
Shareholders in Focus will receive $53 in cash per share, and Stone Point Capital has agreed to retain a portion of its investment in Focus.
FEB 27, 2023
By  Bloomberg

Focus Financial Partners Inc., an aggregator of registered investment advisors, agreed to be acquired by affiliates of Clayton Dubilier & Rice in an all-cash transaction with an enterprise value of more than $7 billion.

Shareholders in New York-based Focus will receive $53 in cash per share, representing a premium of about 36% to the firm’s 60-day average price as of Feb. 1, the day before a potential transaction was announced, the company said in a statement Monday. Funds managed by Stone Point Capital agreed to retain a portion of its investment in Focus and provide new equity financing as part of the deal.

CD&R and Stone Point said they agreed to the deal because of Focus’s competitive positioning in a multitrillion-dollar global industry. Focus, which has almost 90 firms in its partnership, acquires high-performing wealth management firms that primarily serve high-net-worth and ultra-high-net-worth clients, and has a visible presence in the sector globally through its international partner firms, CD&R and Stone Point said.

“We are enthusiastic about the opportunity to partner with Focus to help grow and develop its exceptional partner firm network,” Dan Glaser, a CD&R partner, said in the statement.

The deal is expected to close in the third quarter, and Focus will cease to be a publicly traded company when the takeover is completed. The agreement provides for a 40-day “go-shop” period that expires April 8. A special committee of Focus’s board unanimously determined that the transaction is in the best interests of the company and shareholders, according to the statement.

180 Capital CEO explains why microcaps are magnificent

Latest News

Indie $8B RIA adds further leadership talent amid growth drive
Indie $8B RIA adds further leadership talent amid growth drive

Executives from LPL Financial, Cresset Partners hired for key roles.

Stock volatility remained low despite risk events
Stock volatility remained low despite risk events

Geopolitical tension has been managed well by the markets.

Fed minutes to provide signals on rate cuts
Fed minutes to provide signals on rate cuts

December cut is still a possiblity.

Trump's tariff talk roils markets, political leaders
Trump's tariff talk roils markets, political leaders

Canada, China among nations to react to president-elect's comments.

Ken Leech formally charged by SEC, US Attorney's Office
Ken Leech formally charged by SEC, US Attorney's Office

For several years, Leech allegedly favored some clients in trade allocations, at the cost of others, amounting to $600 million, according to the Department of Justice.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound