KKR to acquire Perpetual's wealth management, corporate businesses for $1.4 billion

By Alice Uribe

SYDNEY - Perpetual has agreed to sell its corporate trust and wealth management businesses to buyout firm KKR in a deal worth more around 2.18 billion Australian dollars (US$1.44 billion).

The Australian financial company said Wednesday that it had concluded a strategic review, which would see it become a standalone, global multi-boutique asset management business, with the sale of the separated corporate trust and wealth management divisions to unlock value for shareholders.

Perpetual (AU:PPT) has entered into a scheme implementation deed with an affiliate of KKR (KKR), who will acquire 100% of the two businesses via a scheme of arrangement for a cash consideration of A$2.18 billion. This represents a valuation of 16.3 times its last 12 months' earnings before interest and tax, said Perpetual.

The deal is expected to be completed in February 2025, subject to the satisfaction of customary conditions, said Perpetual. Its chief executive, Rob Adams, will retire following a period of orderly transition upon the completion of the deal.

The scheme is subject to a vote by Perpetual shareholders, but the board has unanimously recommended that shareholders vote in favor of the scheme, subject to there being no superior proposal and an independent expert concluding that the scheme is in the best interests of Perpetual shareholders.

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05-07-24 2251ET

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