Goldman Sachs selling Personal Financial Management (PFM) unit in busy day for M&A deals

By Steve Gelsi

Danaher's $5.7B deal for Abcam leads a flurry of M&A announcements on Monday.

Goldman Sachs Group Inc. (GS) said Monday it agreed to sell its Personal Financial Management (PFM) unit to Creative Planning LLC for an undisclosed sum, part of a mini-flurry of mergers and acquisitions announced Monday.

Meanwhile, Danaher Corp.'s (DHR) $5.7 billion acquisition of Abcam Plc (ABCM) led the morning deal parade in terms of total disclosed dollar value, while Kimco Realty Corp. (KIM) announced it is buying RPT Realty (RPT) for about $2 billion.

Overall, deal-makers have been calling for an uptick in M&A activity after private equity firms and other players hit the pause button earlier this year in the face of the uncertain economy and the spring regional-bank crisis.

Also read: Dealmakers predict M&A trough in private-market deals may smooth out in coming months

"While there's a lot of speculation about soft landings or recessions, what bankers are telling us is that there's still value in growth companies," Pankaj Bukalsaria, director of investment banking at Acuity, said in a statement on the firm's investment banking and advisory survey. "Some of the changing economic conditions are prompting a renewed focus on innovation within investment banks but overall the broad macro picture is less bleak than some headlines might suggest."

Goldman Sachs follows through on plans to re-focus wealth business

Creative Planning LLC, a registered investment adviser with more than 2,100 employees and $245 billion in combined assets under management and advisement, is buying Goldman Sach's Personal Financial Management unit.

The company's purchase of Personal Financial Management (PFM) deal came after Goldman Sachs said on Aug. 21 it was considering the sale of the unit, which has $29 billion in assets.

Privately-held Creative Planning is based in Overland Park, Kan. The company announced in 2020 that General Atlantic LLC made a minority interest in its business.

Goldman Sachs said the sale of PBM will result in a gain after it closes in the fourth quarter. The bank did not provide any additional details on the gain.

Goldman is shifting its focus to its ultra-high net worth business, which counts more than 16,000 clients and tips the scale at $1 trillion in assets.

Danaher buys Abcam amid multiple bidders

Abcam Plc's stock (ABCM) was down 3.4% after it said it agreed to be acquired by Danaher for $24 a share in cash in a deal that values the maker of antibodies and reagents for drug discovery efforts at about $5.7 billion including debt.

The price amounts to a premium of 64 cents a share, or 2.7% over its closing price of $23.36 on Friday.

The price of $24 a share is also 26% above Abcam's closing price of $19.06 on June 15, the day before it said it received buyout queries from multiple bidders. Abcam said it considered 20 potential buyers during its review before going with Danaher.

Danaher's stock rose 2.2%.

Kimco Realty scoops up New York shopping center owner

RPT Realty's stock (RPT) was up 19.1% on Monday after it said it agreed to be acquired by Kimco Realty Corp. in an all-stock deal that values the New York-based shopping center owner at $2 billion including debt.

Kimco's stock rose by 1.3%.

RPT shareholders will receive 0.6049 of a newly issued Kimco share for each RPT share they own.

The deal amounts to a price of about $11.34 per RPT share or a premium of 19% over the closing prices of Kimco and RPT stock on Friday,

Private-equity firm KSL Capital buying Hersha Hospitality Trust

Hersha Hospitality Trust's stock (HT) stock soared 56.7% toward an eight-month high after the real-estate-investment trust focused on the hospitality sector announced an agreement to be acquired by private equity firm KSL Capital Partners LLC in a cash deal valued at $1.4 billion.

KSL will pay $10 in cash for each Hersha share outstanding, which represents a 59.2% premium to Friday's closing price of $6.28.

The deal is expected to close in the fourth quarter of 2023.

Thorne HealthTech rallies on plans to go private with L Catterton

Thorne HealthTech Inc.'s stock (THRN) jumped 29% after it said it agreed to be taken private by L Catterton for $10.20 a share in cash in a deal valued at $680 million.

The price amounts to a premium of 94% over Thorne HealthTech's unaffected closing share price on July 20.

Thorne Health's independent special committee and board of directors have each approved the merger deal. The transaction is expected to close in the fourth quarter.

Also read: Midsize private companies are more 'cautiously optimistic' but no one knows where the economy is headed, lender says

-Steve Gelsi

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08-28-23 1343ET

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