MMC has announced it will sell Putnam Investments to West Lifeco for $3.9bn
Marsh & McLennan Companies (MMC) has announced that Great-West Lifeco, a financial services holding company controlled by Canada-based Power Financial Corporation, has signed a definitive agreement to purchase Putnam Investments. The sale price is $3.9bn in cash, subject to certain customary adjustments. Putnam is one of the largest investment management firms in the United States, with $192bn under management at the end of 2006.
The transaction has been approved by the respective boards of directors of MMC and Great-West Lifeco, and is expected to close in the middle of this year, subject to regulatory approval, required client consents, and other customary conditions.
Michael Cherkasky, MMC's president and chief executive officer, said, "This is an important transaction for MMC and its shareholders. We will receive an attractive price for Putnam, strengthen our ability to focus on our core businesses, and significantly enhance our financial flexibility. Selling Putnam is another important step in enhancing long-term shareholder value and driving additional success in our risk and human capital businesses.
"The proceeds to MMC from this sale, combined with our strong cash flow, will give us the flexibility to consider a number of desirable options to further strengthen our company such as investing in our business, stock repurchases, and debt reduction."
