Nationwide Mutual Insurance Company is pleased to announce that Hellman & Friedman LLC ("H&F"), one of the world's leading private equity firms, together with members of Gartmore's senior fund management and executive team, have today agreed to acquire Gartmore Investment Management plc ("Gartmore", "GIM", or the "Company").
Subject to regulatory approval, H&F and Gartmore's management will become the major shareholders of Gartmore with completion anticipated in July 2006. As a result of the transaction, Gartmore's senior fund managers and executives will own a significant portion of the equity of Gartmore and will control the day to day operations of the business. This ownership model aligns the interests of shareholders and key fund managers, thus providing long-term stability for the business, its staff and its clients. The new equity plan will also allow Gartmore to attract, retain and motivate the best business talent.
Jeff Meyer, Gartmore CEO, said: "This transaction is a tremendous outcome for Nationwide, Gartmore's clients, employees and shareholders. We enjoyed a solid foundation under Nationwide's stewardship, however, this transaction will turn employees into owners and allow us to achieve greater stability and alignment of interests. This will benefit clients as we will be better able to retain and attract the most talented employees. In addition, our commitment to the retail, alternative and institutional business will remain unchanged, but our focus, discipline and energy will sharpen. Lastly, I could not be more impressed with our new partners at Hellman & Friedman. They will take forward our strong commitment to our clients, employees and overall corporate success. We do appreciate and thank Nationwide for their strong support for the business over the previous several years."
Roger Guy, Gartmore Board Director, said: "Guillaume Rambourg and I, together with our team, are 100% committed to Gartmore as a result of this transaction. I have taken a seat on the Board and I now look forward to working with the existing senior management members and our new partners from H&F. H&F is one of the few private equity companies with a successful track record of investing and supporting management teams in the investment management arena."
The acquisition includes Gartmore's UK, European, Japanese and Latin American businesses. Under the new structure there will be no change to clients as Gartmore's key priority is to continue to deliver superior investment returns and high quality client servicing. Nationwide will retain the U.S. portion of Gartmore Group, which does business as Gartmore Global Investments, Inc. (GGI), previously Villanova Capital.
Jerry Jurgensen, Chief Executive of Nationwide commented: "The Gartmore UK transaction finalizes Nationwide's strategic exit from Europe and allows us to focus on the U.S. investment and insurance markets. Mutual funds represent a growing share of consumers' financial assets. We know that Nationwide's strong investment expertise, bolstered by our ongoing investment in the Nationwide brand, can enhance the value and appeal of our product lines in the U.S. market."
Patrick Healy, Managing Director & European Head of H&F commented: "This is an exciting day for Gartmore and H&F. We are thrilled to help the management of Gartmore buy their business. Gartmore has evolved into one of the most innovative investment management firms in the industry, offering a broad array of highly regarded High Alpha and Absolute Return products."
Allen Thorpe, Managing Director of H&F added: "H&F will work closely with Gartmore management to support its strategic objectives as a premier investment organization focused on alpha creation. The transaction will enhance stability and serve as a catalyst to enable the company to realise its full potential."
H&F endorses Gartmore's strategy as a leading provider of specialist active investment products in the Retail, Institutional and Alternatives markets. A core focus will be to accelerate the business momentum. Gartmore delivered the best financial performance in the Company's history for 2005 and enjoyed a record first quarter in 2006, despite a period of corporate uncertainty as a result of the sale process over the last months.
Paul Feeney, Gartmore Board Director added: "We really appreciate the loyalty shown by our clients and employees over the last few months, for which we sincerely thank them. They have been incredible and we couldn't have achieved this outcome without them. With the full backing of our partners at H&F, we intend to reward their loyalty with superior investment returns and top quality service. This will all come from a stable and highly motivated company."
Gartmore's Board of Directors will include three employees from Gartmore, three H&F representatives and one independent director. Gartmore's representatives will be Jeff Meyer, Chief Executive Officer; Roger Guy, Investment Director, and Paul Feeney, Head of Distribution. H&F's representatives will be Patrick Healy, Managing Director and Head of Europe; Allen Thorpe, Managing Director, and Blake Kleinman, Principal. In addition, the responsibilities of Les Aitkenhead, Gartmore's Chief Operating Officer, will be expanded to include Legal, Compliance and Human Resources.
Press Enquiries
For GartmoreVee Montebello, Head of Corporate Communications
Kimberley Robinson, Deputy Head of Corporate Communications
Gartmore, London, +44 207 7822447
For Nationwide
Andrew Walton, Financial Dynamics, +44 20 7 269 7204
For H&F
London: Hugh Morrison, M:Communications + 44 207 153 1534
New York: Steve Bruce/Monica Everett, The Abernathy MacGregor Group, +1-212-371-5999
Los Angeles: Ian Campbell, The Abernathy MacGregor Group +1-213-630-6550