Russell acquires Towers Perrin
In what represents one of the most far-reaching acquisitions in the Australian financial services sector, Russell Investment Group has acquired Towers Perrin (Australia).
The acquisition, announced today, flows from the collaboration arrangements between the two companies started in 2002.
Russell Investment Group managing director Alan Schoenheimer says the acquisition represents the next logical step in the relationship.
"It follows three years of successful collaboration between the two firms, who have shared investment research resources as well as jointly completing many of Australia's largest superannuation outsourcing deals," he says.
"This landmark transaction creates an investment and superannuation powerhouse," Schoenheimer says. "The range of services is unmatched in the Australian marketplace and our organisations are now ideally positioned for strong growth in this competitive environment."
The transaction is not expected to result in any significant level of job losses, with both Schoenheimer and Towers Perrin managing director David Solomon claiming that little overlap existed which would necessitate down-sizing.
"If anything, we have been running a little lean," Solomon says. "Obviously, knowing that this was in train, we have not been extensively recruiting over recent months."
The key elements of the deal will see the human resources business of Towers Perrin become known as Russell Employee Benefits and a wholly-owned subsidiary of the Russell Investment Group.
Towers Perrin's Australian asset consulting practice will integrate with Russell's asset consulting practice and the two practices will be fully integrated to create Australia's largest asset consulting business.
Schoenheimer will continue as managing director of Russell Investment Group, while Solomon will become managing director of Russell Employee Benefits, retaining his position until March 31, next year.
AUTHOR
Mike Taylor
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