Invesco and Morgan Stanley have completed the previously announced sale of Morgan Stanley’s retail asset management business, including Van Kampen Investments, to Invesco.
"Since our announcement in October, our organizations have delivered strong investment performance to our clients and strengthened our business momentum while working toward a successful close of the transaction," says Martin L Flanagan (pictured), president and CEO of Invesco. "Today, Invesco moves forward as an independent global asset management organization focused on bringing the tremendous value of this combination to our clients. With more than 700 investment professionals and a comprehensive range of diverse investment strategies, we are better positioned than ever to meet the needs of our clients across the globe."
Under the terms of the agreement, Invesco acquired Morgan Stanley’s retail asset management business, including Van Kampen Investments, in exchange for a combination of cash and equity. To maximize the capital efficiency of the transaction, the final split between cash and equity provided to Morgan Stanley will total USD800 million in cash and 30.9 million shares in Invesco Ltd. equity.
Under the transaction’s final cash/equity split, Invesco expects that the transaction will be incrementally more accretive than previously indicated by approximately 4 cents in the first 12 months after its scheduled June 1, 2010 close. This would yield total EPS accretion in the first year and second year after the close of the transaction of 21 cents and 23 cents, respectively.
"The combination of Invesco’s strong and diversified product portfolio with Van Kampen’s product strengths and leading distribution capabilities creates a formidable provider of retail asset management services," says James P Gorman, president and CEO of Morgan Stanley. "Partnering with Invesco, a world-class asset manager, allows Morgan Stanley to best unlock the value of our retail asset management business as we focus on our institutional business. Invesco is an important strategic partner to our firm, and we look forward to a continued productive relationship."
