Franklin Buys Legg
Franklin buys Legg.
Franklin Templeton buys Legg Mason for $4.5 billion.
The deal is to bring in new investors, expressly in foreign markets, gain scale for technology investments, and find new ways to market and sell each other’s fund lines. Legg Mason and its affiliates manage $806 billion in assets. This will make Franklin Templeton the sixth-largest independent fund firm with $1.5 trillion in assets. It deepens key geographies balanced between institutional and retail client AUM and creates a separately managed account business. Franklin will keep the autonomy of Legg Mason’s affiliates, making sure their investment philosophies, processes, and brands stay unchanged.
Greg Johnson of Franklin said: ‘This is a landmark acquisition for our organization that unlocks value and growth opportunities driven by greater scale, diversity, and balance across investment strategies, distribution channels, and geographies. Our complementary strengths will enhance our strategic positioning and long-term growth potential, while also delivering on our goal of creating a more balanced and diversified organization that is competitively positioned to serve more clients in more places.’
Jenny Johnson of Franklin said: ‘This acquisition will add differentiated capabilities to our existing investment strategies with modest overlap across world-class affiliates, investment teams, and distribution channels, bringing notable added leadership and strength in core fixed income, active equities, and alternatives. We will also expand our multi-asset solutions, a key growth area for the firm amid increasing client demand for comprehensive, outcome-oriented investment solutions.
This transaction gives us a significant scale, addresses strategic gaps, and brings greater balance to our business while positioning us for accelerated growth in the future. We have incredible respect and admiration for the success Legg Mason and its investment affiliates have achieved, and we have structured the transaction to make sure its affiliates have the right mix of independence and support to continue building on their strong track records. Legg Mason’s investment affiliates will be able to leverage Franklin Templeton’s global infrastructure and ongoing investment in technology and innovation, while clients can take comfort in the joint firm’s financial strength and aligned interests.’
Joseph Sullivan of Legg Mason said: ‘The incredibly strong fit between our two organizations gives me the utmost confidence that this transaction will create meaningful long-term benefits for our clients and provide our shareholders with a compelling valuation for their investment. By preserving the autonomy of each investment organization, Legg Mason and Franklin Templeton will leverage our collective strengths, while minimizing the risk of disruption. Our clients will enjoy a shared vision, strong client-focused cultures, distinct investment capabilities, and a broad distribution footprint in this powerful combination.’
Carol Anthony Davidson of Legg Mason said: ‘Today’s announcement marks the beginning of an exciting next chapter for Legg Mason, our investment affiliates, and valued clients, who will enjoy a leading global asset manager with the scale to compete and win in today’s markets. I'm honored to have served as the lead independent director of this dynamic board, and I am truly appreciative of the hard work and dedication of the entire Legg Mason team.’
Nelson Peltz of Trian Fund Management said: ‘Given the dynamics of today’s evolving and increasingly competitive asset management sector, I believe this transaction is compelling. In our view, it offers an attractive valuation for Legg Mason’s shareholders. I believe it will also enable Legg Mason’s investment affiliates to stay at the forefront of an industry where scale is increasingly vital to success and to join Franklin Templeton, an organization that I have a deep respect for and confidence in.’
Trian owns 4.5 percent of Legg Mason's outstanding stock.
James Hirschmann of Legg Mason affiliate Western Asset said: ‘Western Asset is excited to be joining the Franklin Templeton family, a firm with a long and storied history of proven financial performance and a leadership team and board with decades of asset management experience who value our investment independence and organizational autonomy. Like us, Franklin Templeton understands the importance of culture, teams, and core values to achieving outstanding investment results for clients.’
Terrence Murphy of Legg Mason affiliate ClearBridge Investments said: ‘As part of Franklin Templeton, we are confident that we will keep the strong culture that has defined our success as a recognized market leader in active equities. Their commitment to investment autonomy, augmented by the scale and reach that the joint organization will provide, will let us deliver for our existing clients and expand our ability to deliver our investment capabilities in new channels and regions. We are happy to join the team at Franklin Templeton and excited about what we can do together.’
EnTrust Global, a Legg Mason affiliate providing alternative investment solutions, and Franklin Templeton jointly agreed that EnTrust will repurchase its business. EnTrust will keep an ongoing relationship with Franklin Templeton.
Jenny Johnson added: ‘EnTrust is an excellent business, and we recognize and appreciate their wish to once again become a private company. We have appreciated their collaboration in our discussions and look forward to our ongoing relationship.’
Broadhaven Capital Partners, Morgan Stanley, and Ardea Partners served as financial advisors to Franklin. Willkie Farr & Gallagher served as legal advisor.
PJT Partners and JP Morgan served as financial advisors to Legg Mason. Weil, Gotshal & Manges and Skadden, Arps, Slate, Meagher & Flom served as legal advisors.
Dechert served as legal advisor to EnTrust Global.
Franklin Templeton buys Legg Mason for $4.5 billion.
The deal is to bring in new investors, expressly in foreign markets, gain scale for technology investments, and find new ways to market and sell each other’s fund lines. Legg Mason and its affiliates manage $806 billion in assets. This will make Franklin Templeton the sixth-largest independent fund firm with $1.5 trillion in assets. It deepens key geographies balanced between institutional and retail client AUM and creates a separately managed account business. Franklin will keep the autonomy of Legg Mason’s affiliates, making sure their investment philosophies, processes, and brands stay unchanged.
Greg Johnson of Franklin said: ‘This is a landmark acquisition for our organization that unlocks value and growth opportunities driven by greater scale, diversity, and balance across investment strategies, distribution channels, and geographies. Our complementary strengths will enhance our strategic positioning and long-term growth potential, while also delivering on our goal of creating a more balanced and diversified organization that is competitively positioned to serve more clients in more places.’
Jenny Johnson of Franklin said: ‘This acquisition will add differentiated capabilities to our existing investment strategies with modest overlap across world-class affiliates, investment teams, and distribution channels, bringing notable added leadership and strength in core fixed income, active equities, and alternatives. We will also expand our multi-asset solutions, a key growth area for the firm amid increasing client demand for comprehensive, outcome-oriented investment solutions.
This transaction gives us a significant scale, addresses strategic gaps, and brings greater balance to our business while positioning us for accelerated growth in the future. We have incredible respect and admiration for the success Legg Mason and its investment affiliates have achieved, and we have structured the transaction to make sure its affiliates have the right mix of independence and support to continue building on their strong track records. Legg Mason’s investment affiliates will be able to leverage Franklin Templeton’s global infrastructure and ongoing investment in technology and innovation, while clients can take comfort in the joint firm’s financial strength and aligned interests.’
Joseph Sullivan of Legg Mason said: ‘The incredibly strong fit between our two organizations gives me the utmost confidence that this transaction will create meaningful long-term benefits for our clients and provide our shareholders with a compelling valuation for their investment. By preserving the autonomy of each investment organization, Legg Mason and Franklin Templeton will leverage our collective strengths, while minimizing the risk of disruption. Our clients will enjoy a shared vision, strong client-focused cultures, distinct investment capabilities, and a broad distribution footprint in this powerful combination.’
Carol Anthony Davidson of Legg Mason said: ‘Today’s announcement marks the beginning of an exciting next chapter for Legg Mason, our investment affiliates, and valued clients, who will enjoy a leading global asset manager with the scale to compete and win in today’s markets. I'm honored to have served as the lead independent director of this dynamic board, and I am truly appreciative of the hard work and dedication of the entire Legg Mason team.’
Nelson Peltz of Trian Fund Management said: ‘Given the dynamics of today’s evolving and increasingly competitive asset management sector, I believe this transaction is compelling. In our view, it offers an attractive valuation for Legg Mason’s shareholders. I believe it will also enable Legg Mason’s investment affiliates to stay at the forefront of an industry where scale is increasingly vital to success and to join Franklin Templeton, an organization that I have a deep respect for and confidence in.’
Trian owns 4.5 percent of Legg Mason's outstanding stock.
James Hirschmann of Legg Mason affiliate Western Asset said: ‘Western Asset is excited to be joining the Franklin Templeton family, a firm with a long and storied history of proven financial performance and a leadership team and board with decades of asset management experience who value our investment independence and organizational autonomy. Like us, Franklin Templeton understands the importance of culture, teams, and core values to achieving outstanding investment results for clients.’
Terrence Murphy of Legg Mason affiliate ClearBridge Investments said: ‘As part of Franklin Templeton, we are confident that we will keep the strong culture that has defined our success as a recognized market leader in active equities. Their commitment to investment autonomy, augmented by the scale and reach that the joint organization will provide, will let us deliver for our existing clients and expand our ability to deliver our investment capabilities in new channels and regions. We are happy to join the team at Franklin Templeton and excited about what we can do together.’
EnTrust Global, a Legg Mason affiliate providing alternative investment solutions, and Franklin Templeton jointly agreed that EnTrust will repurchase its business. EnTrust will keep an ongoing relationship with Franklin Templeton.
Jenny Johnson added: ‘EnTrust is an excellent business, and we recognize and appreciate their wish to once again become a private company. We have appreciated their collaboration in our discussions and look forward to our ongoing relationship.’
Broadhaven Capital Partners, Morgan Stanley, and Ardea Partners served as financial advisors to Franklin. Willkie Farr & Gallagher served as legal advisor.
PJT Partners and JP Morgan served as financial advisors to Legg Mason. Weil, Gotshal & Manges and Skadden, Arps, Slate, Meagher & Flom served as legal advisors.
Dechert served as legal advisor to EnTrust Global.
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