- Wednesday, October 16, 2024
By Helena Smolak
French investment firm Wendel is currently in exclusive negotiations to acquire a controlling stake in European private-equity firm IK Partners. The move, valued at 383 million euros ($404.5 million), is part of Wendel's plan to establish a new third-party asset management business.
Under the initial investment, Wendel will acquire 51% of IK Partners' shares and will have rights to 20% of the carried interest from future funds raised by IK Partners.
As part of the acquisition process, Wendel aims to fully acquire IK Partners between 2029 and 2032. The final price for the remaining 49% stake will be determined based on the growth of IK Partners' fee-related earnings during this period, with options for payment in cash or stock.
Wendel also announced a concurrent share buyback program worth EUR100 million. The repurchased stock under this program may potentially be used to finance the acquisition of the remaining stake in IK Partners.
The primary motivations behind this transaction are to enhance recurring income, operational synergies, and intrinsic value, according to Wendel. The deal is expected to be completed in the first half of 2024 and is part of Wendel's broader investment strategy of EUR2 billion over a 24-month period.
Through this partnership, Wendel plans to provide substantial capital to strengthen IK Partners' existing and upcoming platform funds, while also supporting the development of new investment strategies.
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