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Administration February 8, 2001
Eaton Vance on Buying Binge
August 2, 2001 (PLANSPONSOR.com) - Eaton Vance has
signed a definitive agreement to acquire 70% of Atlanta
Capital Management Company for $75 million - a move that
comes on the heels of recently announced plans to acquire Fox
Asset Management.
Reported by Camilla Klein
Atlanta Capital has over 80 institutional clients, including public pension funds, Taft-Hartley plans, corporations, and charitable and religious organizations.
Apart from managing $4.9 billion in large cap growth equities, Atlanta Capital also manages $1.3 billion in fixed-income assets, and offers a small-cap equity product with approximately $300 million in assets.
The deal, coupled with the recent acquisition of Fox Asset Management, Inc., will increase Eaton Vance?s assets under management by approximately 16% to $58 billion.
Autonomous
Atlanta Capital will become an indirect subsidiary of Eaton Vance, operating as an autonomous business unit under its current management team, the members of which have all signed long-term employment contracts.
Under the agreement, 80% of the $75 million will be paid in cash and the remainder in stock. Employees of Atlanta Capital will continue to hold the remaining 30% of the company?s stock with the right to sell to Eaton Vance over a five-year period beginning in 2005.
Eaton Vance will have the right to purchase the 30% minority interest in two stages in 2007 and 2009, the price based on a multiple of earnings before interest and taxes.
The transaction is expected to close by October 31, 2001, subject to various approvals.