Piper Jaffray Completes Acquisition of Fiduciary Asset Management, LLC
September 14 2007 - 9:35AM
PR Newswire (US)
MINNEAPOLIS, Sept. 14 /PRNewswire-FirstCall/ -- Piper Jaffray
Companies (NYSE:PJC) announced that it has completed its
acquisition of Fiduciary Asset Management, LLC (FAMCO), which
serves clients through separately managed accounts and closed end
funds, and offers an array of investment products including
traditional core equity, quantitative and hedged equity, master
limited partnerships, and fixed income. "We are very pleased to
complete the acquisition of FAMCO, which will significantly expand
our asset management capability," said Andrew Duff, Piper Jaffray
chairman and CEO. "FAMCO represents a strong and growing foundation
which we expect to further extend through additional distribution
capability and product offerings, and an expanded client base." As
consideration for the transaction, the company paid approximately
$51.3 million in cash at the time of closing and may make an
additional cash payment of up to $15.1 million contingent on new
assets under management secured through December 15, 2007. The
company may pay additional future cash consideration based on
financial performance through 2010. FAMCO has approximately $8.2
billion of assets under management. The current management team,
which consists of Charles Walbrandt, Joseph Gallagher, Wiley
Angell, Jim Cunnane, Jr. and Mo Riad, will continue to manage the
business. Walbrandt, CEO of FAMCO, will continue to lead the team
and will report to Duff. FAMCO has approximately 50 employees and
its headquarters will remain in St. Louis, Mo. About Piper Jaffray
Piper Jaffray Companies is a leading, international middle-market
investment bank and institutional securities firm, serving the
needs of middle market corporations, private equity groups, public
entities, nonprofit clients and institutional investors. Founded in
1895, Piper Jaffray provides a comprehensive set of products and
services, including equity and debt capital markets products;
public finance services; mergers and acquisitions advisory
services; high-yield and structured products; institutional equity
and fixed- income sales and trading; and equity and high-yield
research. With headquarters in Minneapolis, Piper Jaffray has 25
offices across the United States and international locations in
London and Shanghai. Piper Jaffray & Co. is the firm's
principal operating subsidiary. (NYSE:PJC)
(http://www.piperjaffray.com/) Cautionary Note Regarding
Forward-Looking Statements This press release contains
forward-looking statements. Statements that are not historical or
current facts, including statements about beliefs and expectations,
are forward-looking statements. These forward-looking statements
cover, among other things, the future prospects of Piper Jaffray
Companies and its asset management business. Forward-looking
statements involve inherent risks and uncertainties, and important
factors could cause actual results to differ materially from those
anticipated, including the following: (1) costs or difficulties
relating to the integration of the FAMCO and Piper Jaffray
businesses may be greater than expected and may adversely affect
our results of operations and financial condition; (2) the expected
benefits of the transaction and entering the asset management
business, including revenue growth, increased profitability and
shareholder returns, may take longer than anticipated to achieve
and may not be achieved in their entirety or at all; (3) strategies
with respect to the redeployment of proceeds from the sale of our
Private Client Services business, including entering the asset
management business, may take longer than anticipated to be
realized or may not be achieved in their entirety or at all; (4)
developments in market and economic conditions have in the past
adversely affected, and may in the future adversely affect, the
business and profitability of Piper Jaffray; (5) Piper Jaffray may
not be able to compete successfully with other companies in the
financial services industry; and (6) other factors identified under
"Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K
for the year ended December 31, 2006, and updated in our subsequent
reports filed with the SEC. These reports are available at our Web
site at http://www.piperjaffray.com/ and at the SEC Web site at
http://www.sec.gov/. Forward-looking statements speak only as of
the date they are made, and we undertake no obligation to update
them in light of new information or future events. Since 1895.
Member SIPC and NYSE. (C) 2007 Piper Jaffray & Co., 800
Nicollet Mall, Suite 800, Minneapolis, Minnesota 55402-7020
DATASOURCE: Piper Jaffray Companies CONTACT: investors, Jennifer A.
Olson-Goude, +1-612-303-6277, media, Rob Litt, +1-612-303-8266,
both for Piper Jaffray Companies Web site:
http://www.piperjaffray.com/
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