France's Wendel to acquire Monroe Capital for $1.13 billion (updated)
22/10/2024 07:07
(Adds details from paragraph 3)
Oct 22 (Reuters) - French investment company Wendel
MWDP.PA said on Tuesday it would acquire U.S. asset investment
firm Monroe Capital MRCC.O , with an initial investment of
$1.13 billion for 75% of the company's shares.
Wendel's asset management platform is expected to generate
about 185 million euros ($200 million) of pre-tax profit in
2025, the group said in a statement.
The agreement also includes an $800 million sponsoring
programme to accelerate Monroe Capital's growth, it added.
Under the agreement, Monroe Capital will continue to operate
autonomously under the same brand and the group's investment
committee is to remain independent, Wendel said.
The investment represented "a significant and
transformational advancement of the strategy it announced in
March 2023 to develop its third party asset management platform
to complement its longstanding principal investments business,"
the French firm said.
It expects the transaction to be completed in the first half
of 2025.
(Reporting by Alban Kacher; Editing by Clarence Fernandez and
Emelia Sithole-Matarise)
((alban.kacher@thomsonreuters.com))