Franklin Templeton acquires Legg Mason for US $4.5bn

acquisition merger M&As Franklin Templeton Legg Mason Western Asset Jenny Johnson Jospeh A. Sullivan

19 February 2020
| By Laura Dew |
image
image
expand image

Franklin Templeton is to acquire Legg Mason in an all-cash deal of US$4.5 billion ($6.7 billion) to create a combined $1.5 trillion asset manager.

Legg Mason and its affiliates such as Western Asset had $806 billion in assets.

Franklin Templeton said the acquisition would ‘significantly deepen’ the firm’s presence in key geographies and create an investment platform which was ‘balanced between institutional and retail’. It would also create a strong separately managed account business.

Autonomy of Legg Mason’s affiliates would be preserved and the acquisition was expected to result in $200 million in annual cost savings.

There would be no change to Legg Mason senior management and the combined firm would operate as Franklin Templeton.

Jenny Johnson, president and chief executive of Franklin Templeton, said, “This acquisition will add differentiated capabilities to our existing investment strategies with modest overlap across multiple world-class affiliates, investment teams and distribution channels, bringing notable added leadership and strength in core fixed income, active equities and alternatives.

“We will also expand our multi-asset solutions, a key growth area for the firm amid increasing client demand for comprehensive, outcome-oriented investment solutions.” 

Joseph A. Sullivan, chairman and chief executive of Legg Mason, said, “The incredibly strong fit between our two organisations gives me the utmost confidence that this transaction will create meaningful long-term benefits for our clients and provide our shareholders with a compelling valuation for their investment.

“By preserving the autonomy of each investment organization, the combination of Legg Mason and Franklin Templeton will quickly leverage our collective strengths, while minimizing the risk of disruption. Our clients will benefit from a shared vision, strong client-focused cultures, distinct investment capabilities and a broad distribution footprint in this powerful combination.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Peter Johnson

As others have said - plenty of excuses for further falls. How about decades of being continually beaten down by the...

2 hours 56 minutes ago
Duke Nukem

Finally someone with the guts to ask the hard questions of the corrupt body that governs us. Good on you Angry, ASIC mak...

4 hours 18 minutes ago
Alex

Planners will be in short supply, with only 376 in FY23–24. In my experience, of this number, only around 20% to 30% wi...

1 day ago

Insignia Financial has unveiled a new operating model and executive team, including a new head of advice, while three senior executives are set to depart the licensee....

1 week 6 days ago

ASIC has secured travel restraint orders against a financial adviser while he is the subject of an investigation into alleged financial misconduct....

1 day 20 hours ago

The $280 billion Australian Retirement Trust is the first superannuation fund off the block to report its performance for the 2023-24 financial year....

3 weeks 2 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Ardea Diversified Bond F
144.00 3 y p.a(%)
3
Hills International
63.39 3 y p.a(%)