Paris-based asset management firm Amundi is to acquire Smith Breeden Associates, a US institutional asset management firm specialising in the major US fixed income sectors.
The final agreement between Amundi and Smith Breeden is subject to customary conditions, including informing regulatory authorities and gaining the approval of certain clients and shareholders. The closing of the transaction should take place by the end of September 2013.
For Amundi, the acquisition of Smith Breeden has three key objectives: the ability to offer asset management expertise in US dollar products to its institutional and corporate clients in Europe, Asia and the Middle East; secondly, a strengthening of the US component of its Global Fixed Income expertise; and thirdly a way to enhance the development of Amundi’s expertise in the US.
For Smith Breeden, the rationale for this transaction is equally compelling, as it gives Smith Breeden the opportunity to: strengthen its relationships with US clients; reach out to Amundi’s worldwide institutional client base; and Benefit from Amundi’s global investment, research, client servicing and operating resources.
Upon the closing of this transaction, Smith Breeden will be renamed Amundi Smith Breeden, and be a fully-owned and controlled subsidiary within the Amundi group. Patrick Pagni, currently Amundi’s Senior Regional Officer for North America, will serve as Executive Chairman of Amundi Smith Breeden, and Mike Giarla will continue to manage the company as Chief Executive Officer. All key people within Smith Breeden expressed their support of the transaction. The company will be part of Amundi’s Fixed Income organization; there will be no change in Smith Breeden’s investment process or personnel. The acquisition of Smith Breeden is a significant contribution toward Amundi’s goal of creating a global fixed income platform with established regional expertise.
“The integration of Smith Breeden constitutes a new step in Amundi’s development. It will enhance the range and the quality of our fixed income offerings for our clients, thanks to the expertise of the Smith Breeden team, which shares with Amundi common values based on a long term commitment to the clients and the delivery of sustainable performance through a disciplined research-driven investment process,” says Yves Perrier, Chief Executive Officer of Amundi.
“This transaction represents a unique opportunity for Smith Breeden to join one of the strongest players in global asset management. Together, we will make Amundi Smith Breeden a company that will benefit both our clients and our employees. We are looking forward to working with Amundi to build upon our recent successes and further expand our client base,” says Mike Giarla, Chairman and Chief Executive Officer of Smith Breeden Associates.
