New York-headquartered wealth and advice group Focus Financial has entered into an exclusivity agreement with investment company Clayton, Dubilier & Rice (CD&R).
This is to engage in negotiations regarding the potential acquisition of Focus Financial by CD&R for $53 (£43, €48) per share.
In November 2022, Focus created a special committee to evaluate a non-binding offer it received from the private investment firm and to explore alternative deals.
After consideration, the committee agreed to enter in an exclusivity agreement with CD&R on the basis of its offer, its “best and final”, the firm said.
Funds managed by Stone Point Capital are considering retaining a portion of their investment in the advice group and provide new equity financing, subject to negotiation with CD&R.
Focus Financial said in a statement: “Negotiations regarding definitive terms and agreements are ongoing and there is no certainty that final terms of any transaction will be agreed upon or, if agreed upon, completed.
“Any transaction would be subject to the completion of due diligence, board and stockholder approval, regulatory approvals and other customary conditions. Focus will cease to be a publicly-traded company if such a transaction is consummated.”
Focus Financial is a global advice group with operations – and is often completing M&A deals in the US. It also set up a subsidiary arm called Connectus, which is a “global consortium”.
Connectus made its first UK purchase in 2021 with the acquisition of Cheshire-based Watterson Financial Planning for an undisclosed sum.
