|
Target Information |
| Target: |
Trust Company of
the West Type of Company: Asset Management |
| City: |
Los Angeles |
State: CA |
| Financial Data As Of: |
12/31/00 |
Assets Under
Mgmt.: $80 billion |
EBITDA: ~$100 million |
| Target’s Business: |
TCW's primary
business is the provision of investment management services,
specializing in the management of taxable and tax-exempt pools of
capital for pension and profit sharing funds, retirement/health and
welfare funds, public employee retirement funds, financial institutions,
endowments and foundations as well as foreign investors. TCW is one of
the largest employee-owned fund managers in the US, employing nearly 600
people with $80 billion of assets under management. Its client portfolio
consists of one-third retail and two-thirds institutional clients.
Assets under management are comprised of $34 billion in US equities, $34
billion in US fixed income, and $11 billion in alternative and
international investments. |
|
Acquirer Information |
| Acquirer: |
Societe Generale
Group (SG) Type of Company: International Banking |
| City: |
Paris |
France |
| Financial Data As Of: |
12/31/00 |
Assets Under
Mgmt.: $258 billion |
Operating Income: $3.1
billion |
| Acquirer’s Business |
SG is one of
Europe’s largest and most profitable banking groups. Its business is
structured around three business lines: retail banking, corporate and
investment banking, and asset management and private banking. SG has 6.8
million customers, with 5 million in France, 500 offices in 75 countries
and 65,000 employees. In a related effort to bolster its asset
management operations, the company recently acquired the European
specialized financial services division of Germany’s Deutsche Bank.
|
|
Transaction Information |
| Status: |
Pending |
| Announcement
Date: |
04/11/01 |
Accounting:
Purchase |
| Completion Date: |
Pending |
Consideration:
Common Stock |
| Deal Value: |
$880 million for
51% of equity ($1.7 billion market value) |
| Price/Managed
Assets |
2.2% |
| Price/EBITDA |
16.0x (based on
TCW’s 2001-2002 budgets) |
| Comments: |
The acquisition
of TCW was necessary to complete SG’s 2002 international strategic plan.
TCW was attractive due to its well-balanced clientele of US
Institutionals and high net worth clients as well as a wide product base
ranging from US Equities to sophisticated US fixed-income product. SG
provides TCW product with an international distribution platform. SG
will issue 14.1 million shares representing 3.3% of the Group’s capital
to pay for the acquisition. Between 2003 and 2006, the Group will
acquire an additional 19% of TCW’s capital in four equal installments,
at which time SG will own 70% of the equity. |
