KKR to buy Perpetual’s corporate, wealth units for $1.4 billion; CEO Adams to retire

(Reuters) – Perpetual said on Wednesday that buyout giant KKR & Co (NYSE:) would acquire its wealth management and corporate trust businesses for A$2.18 billion ($1.43 billion), sending the Australian financial services firm’s shares to a five-month low.

Perpetual also announced the retirement of its CEO and managing director Rob Adams, bringing an end to a months-long strategic review of the company.

The deal comes 16 months after Perpetual acquired smaller fund manager Pendal in a deal worth $1.6 billion and is now being demerged with KKR buying the corporate and wealth management units.

Shares of the Australian company fell as much as 6.5% to A$22.47, as of 0134 GMT, to hit their lowest since December 5.

“The strategic review was extremely thorough and considered a number of options, involving extensive engagement with several high-quality parties and potential bidders,” said Chairman Tony D’ Aloisio.

The buyout leaves Perpetual as a standalone asset management business that will manage around A$227 billion in assets and will help the global investment firm expand its footprint in Australia.

The company was recently active in the M&A market, with suitors both local and overseas looking to cash into the fund manager.

In December, top shareholder Washington H Soul Pattinson (Soul Patts) made a bid worth A$3.1 billion for Perpetual, which it had rejected.

The company had also turned down turned down an A$1.7 billion takeover bid from a consortium which comprised local portfolio manager Regal Partners in late 2022.

($1 = 1.5209 Australian dollars)