Private equity investment firm Madison Dearborn Partners’ controlled affiliate has entered into an agreement to acquire National Financial Partners (NFP) in a transaction with an equity value of approximately $1.3bn.
As per the agreement, for each share of NFP common stock, its shareholders will receive $25.35 in cash, in a transaction that also includes the full value of the company’s convertible debt.
The purchase price represents a premium of nearly 26% over NFP’s closing share price of $20.05 on 12 March 2013.
NFP chairman and chief executive officer Jessica Bibliowicz said that the deal will offer its shareholders with significant value and major opportunities for its clients and employees by teaming up with the firm.
Madison Dearborn managing director VaheDombalagian commented, "We fully support NFP’s focus on providing high-quality and value-added services to all of its clients, including corporations, through a more unified brand across its business segments."
Backed by NFP’s board of directors and expected to conclude during the third quarter of 2013, the transaction is yet to receive regulatory approvals and other customary closing conditions as well as shareholders’ confirmation.
Debt financing commitments for the acquisition has been provided by Deutsche Bank Securities, Morgan Stanley Senior Funding UBS Securities.
BofA Merrill Lynch, Cleary Gottlieb Steen & Hamilton, Skadden, Arps, Slate, Meagher & Flom, UBS Securities and Ropes & Gray served as the advisors pertaining to the transaction.