Legg Mason, a US-based investment management firm, has agreed to purchase a 83% stake in Clarion Partners, a New York-based real estate investment firm, in a deal worth $585m.
The acquisition will see the management team of Clarion Partners retaining the remaining 17% stake in the firm.
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Following the deal, Clarion Partners will become the primary independent real estate investment affiliate for Legg Mason.
The acquisition will expand Legg Mason’s offering in the alternative asset management category as well as add differentiated real estate capabilities such as core, core-plus portfolios, and opportunistic portfolios.
The company said the deal is expected to be modestly accretive to earnings in the first year after the closing, excluding one-time deal-related charges of $10-$15 million.
Additionally, Clarion Partners and CEO Steve Furnary will continue to remain in his current role.
Legg Mason chairman and CEO Joe Sullivan said: "Most importantly, the experienced management team at Clarion Partners shares our passion for innovation, the creation of exceptional value through responsible investing principles and focus on excellence for clients. We welcome them to Legg Mason."
Clarion Partners chairman and CEO Steve Furnary said: "Most importantly, we remain investors in our business, and the partnership gives us investing and operating autonomy so that we can continue to serve our clients in the same way we always have. We are pleased to be a part of such an outstanding organization."
