Impax Asset Management Group plc · LSE:IPX
Impax Asset Management — Merger or Acquisition (September 2017)
11 slides from Impax Asset Management's merger presentation, Sep 18, 2017
Slide 1: Acquisition of Pax World Management LLC
Impax Asset Management Group plc Acquisition of Pax World Management LLC Further extending Impax’s position as a leading investment manager focused on the transition to a more sustainable global economy 18 September 2017 CLEAR INVESTMENT
Slide 2: Summary
Summary • Impax has entered into an agreement to acquire Pax World Management LLC – 83.3 per cent from majority shareholder and others at Closing – 16.7 per cent from Pax Management in 2021 under put/call arrangements • Based in the US, Pax is a pioneer in sustainable investing with AUM of £3.477 bi
Slide 3: Pax
Pax • Founded in 1971, Pax is a recognised leader in the development of sustainable investing in the United States • 50 staff based in Portsmouth, New Hampshire • AUM increased by 70% since 20121 • Recent financial performance: Year ended 31 December 2014 (audited) 2015 (audited) 2016 (audited) AUM
Slide 4: Strategic rationale for the transaction
Strategic rationale for the transaction • Combination of two pioneering firms focused on the transition to a more sustainable economy – Rising interest from asset owners worldwide – Companies have extensive, diversified client bases and award winning investment products – Impax AUM rises by 43 per c
Slide 5: Investment capabilities
Investment capabilities Asset class Style Strategy Impax Pax Global thematic ✓ - Global unconstrained ✓ - Active US ✓ ✓ Listed equity Europe ✓ - Asia ✓ - Global thematic - ✓ Passive US - ✓ Private equity ✓ - Fixed income - ✓ CLEAR INVESTMENT 5
Slide 6: Transaction consideration
Transaction consideration • Initial valuation of $52.5m • Impax buying 83.3 per cent of Pax for $44.2m from exiting shareholders, principally the Shadek family1 • Initial consideration: $38.1m in cash and $6.1m of Impax shares at the IPX share price prevailing at Closing • Remaining shares (16.7 per
Slide 7: Transaction financing
Transaction financing • Initial purchase of $44.2m funded by: – Impax cash: $12.1m – New Impax debt: $26m – Newly issued Impax shares: $6.1m to majority shareholder (subject to lock in) • Cash leaves Impax with adequate reserves, including for regulatory capital • New debt facility from Royal Bank o
Slide 8: Integration plan
Integration plan • Transaction rationale is not predicated on head-count reduction/cost synergies • Brand – Pax World Management LLC to be renamed Impax Investment Management (US) LLC • US mutual funds managed by Pax will retain the Pax name • Investment management teams and process – the US and UK
Slide 9: The combined Group
The combined Group Impax stand alone Combined Group1 Run rate revenue £36.1m £59.6m Run rate EBITDA £11.1m £15.6m Cash2 £22.3m £13.1m Investments £8.6m £8.6m Debt 0 £20.1m Shares in issue 127.7m 132.0m3│137.8m4 Goodwill/intangibles 0 £38.5m (approx) arising on acquisition5 1US$/£ 1.293. 2Assuming ac
Slide 10: Timetable
Timetable Date Announcement 18 September 2017 Proposed date of General Meeting 18 October 2017 Expected completion By 28 February 2018 CLEAR INVESTMENT 10
Slide 11: Important information
Important information This document has been prepared by Impax Asset Management Group plc and approved by Impax Asset Management Limited and Impax Asset Management (AIFM) Limited (“Impax”, authorised and regulated by the Financial Conduct Authority). Both companies are wholly owned subsidiaries of I
Impax Asset Management Group — Merger or Acquisition (September 2017) on 6ix