LONDON, UK: River and Mercantile Group (R&M) announced the proposed sale of its US Solutions business, River and Mercantile LLC to Agilis Holding Company for a minimum consideration of $8.6 million.
Description of the business:
· The company operates independently to the UK Solutions business and focuses on improving investment outcomes for a range of US-based investors, offering flexible solutions determined by client-specific needs across both actuarial and investments.
· There are two key groups within the company; the actuarial group, which specialises in pension actuarial and administrative services including annuity buyouts and plan terminations, and the investment group, which specialises in outsourced CIO services, investment consulting, derivatives management, and investment management.
The transaction is a key step in the Group’s strategy of realising value for shareholders and follows the announcement in October 2021 of the sale of its UK Solutions business to Schroders and the proposed all-share acquisition of RMG by AssetCo plc.
Michael Faulkner, Ryan McGlothlin, Tom Cassara and David Rosenblum, the key senior managing personnel of the US Solutions business, hold the interests in the Purchaser and are providing the funding to complete on the transaction.
Michael Faulkner and Ryan McGlothlin are also directors of the Seller and therefore the transaction constitutes a related party transaction under Chapter 11 of the Listing Rules and requires R&M shareholder approval.
R&M expects to publish a circular shortly relating to the transaction which will contain a notice of General Meeting at which the resolution to approve the transaction will be put to shareholders.
The transaction is also conditional on the transfer of the Group’s emerging markets equities “ILC” business out of the company.
ILC will continue to be part of the Group’s asset management activities and will be supported by R&M’s remaining business.
The transaction is expected to complete in the second quarter of the year.