US-based Guggenheim Securities has agreed to acquire financial services firm Millstein & Co. for an undisclosed price.
Millstein is an advisor to firms, investors, and sovereigns with specialization in restructuring, sovereign advisory and financial institutions.
On the other hand, Guggenheim Securities is the investment banking and capital markets business of New York-based global investment service company Guggenheim Partners.
Guggenheim Securities said that the acquisition, which will combine the advisory team of Millstein with its restructuring group, will create a leading provider of restructuring and liability management solutions.
Millstein was founded by Jim Millstein, who served as the chief restructuring officer of the US Department of the Treasury between 2009 and 2011.
Also the CEO of Millstein, Millstein will be made the co-chairman of Guggenheim Securities after the completion of the deal, alongside Alan Schwartz, who is currently executive chairman of Guggenheim Partners and co-chairman of Guggenheim Securities.
Schwartz said. “Jim brings an extensive history of senior leadership, a deep understanding of markets, and an unparalleled reputation as an innovative thought partner with his clients. Jim and his team of highly talented bankers share our approach to advising clients and values core to our firm.”
Guggenheim Securities is currently an advisor for its clients in matters related to mergers, acquisitions, divestitures, restructurings, spin/split-offs, joint ventures, leveraged buyouts, capital raisings and recapitalizations among others.
The company has four main types of services, which include advisory, financing, sales and trading, and research.
Millstein said: “Alan and his partners have built a first-class independent investment bank, and I look forward to helping them continue to grow its business through the combination of our respective restructuring and liability management businesses.
“In a world awash in debt, the need for creative solutions to help businesses, governments and investors avoid or mitigate the adverse impacts of financial distress is as great today as ever and the combination with Guggenheim will give us access to a deep bench of talented investment bankers to better serve the needs of our clients.”
The acquisition, which will be subject to regulatory approvals, is anticipated to be completed in the third quarter of this year.