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Impax Asset Management to Acquire US-based Pax World Management.

M2 EQUITYBITES-September 19, 2017-Impax Asset Management to Acquire US-based Pax World Management

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19 September 2017 - UK-based investment management group Impax Asset Management Group plc (AIM: IPX) has entered into agreements to acquire 100% of US-based investment manager Pax World Management LLC, the company said.

Pax, which was founded in 1971, is a specialist in the field of sustainable investing in the United States.

Based in Portsmouth, New Hampshire, Pax manages eleven mutual funds and, as at 31 August 2017, had assets under management of USD 4.496bn.

Impax and Pax formed a partnership in 2007 to launch and manage the Pax Global Environmental Markets Fund, which, as a result of the successful long-term collaboration between the two companies, as at 31 August 2017 had net assets of USD 511m.

Pro forma assets under management of the combined Group would be GBP 10.3bn (USD 13.4bn).

Impax, which is headquartered in London, with offices in the New York metropolitan region, Portland and Hong Kong, has assets under management of GBP 7.245bn (USD 9.367bn), and focuses on actively managed global public equity and private equity strategies;

Pax, which is headquartered in Portsmouth, USA, has AUM of GBP 3.477bn (USD 4.496bn), offers actively and passively managed equity and fixed income strategies.

Under the deal, Impax will acquire 100% of Pax at an initial valuation of USD 52.5m. Additional contingent payments of up to USD 37.5m is payable in 2021, subject to Pax's performance.

Exiting shareholders, principally the Shadek family, representing ca. 83.3% interest in Pax, to receive USD 44.2m at Closing and up to USD 31.3m of contingent payments.

Management shareholders, representing ca.16.7% interest in Pax to receive Impax shares in 2021 valued at a minimum of USD 8.3m plus up to USD6.3 m of contingent payments.

Pax will be renamed Impax Investment Management LLC, and will become a division of Impax.

Joe Keefe, Pax's president and chief executive officer will continue to lead Pax, reporting to Ian Simm, Impax's chief executive, and is expected to join the board of Impax Asset Management Ltd, Impax's London-based investment management subsidiary.

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Publication:M2 EquityBites (EQB)
Geographic Code:4EUUK
Date:Sep 19, 2017
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