MutualFundWire.com: Weil Merges Janus With an Across the Pond Giant

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Monday, October 3, 2016

Weil Merges Janus With an Across the Pond Giant

Dick Weil is merging Denver-based Janus [profile] with a British multinational asset manager.

Richard Weil
Janus
Chief Executive Officer

This morning Weil and Andrew Formica, CEO of London-based Henderson Global Investors [profile] parent Henderson Group, unveiled a "merger of equals." The combined Janus Henderson Global Investors plc would have a market capitalization of about $6 billion and AUM of more than $320 billion. The plan is for Formica and Weil, CEO of Janus, to lead the combined shop together.

Weil and Formica will serve as co-CEOs of the combined company. Enrique Chang, head of investments at Janus, will become Janus Henderson's global chief investment officer. Phil Wagstaff, global head of distribution at Henderson, will retain that position at Janus Henderson. Bruce Koepfgen, president of Janus, will become Janus Henderson's head of North America. Rob Adams, executive chairman pan Asia for Henderson, will become Janus Henderson's head of Asia pacific. Jennifer McPeek, chief financial officer of Janus, will become Janus Henderson's chief operating and strategy officer. Roger Thompson, CFO of Henderson, will become Janus Henderson's CFO. David Kowalski, chief compliance officer of Janus, will become Janus Henderson's chief risk officer. And Jacqui Irvine, general counsel and company secretary of Henderson, will become Janus Henderson's group general counsel and company secretary.

Andrew Formica
Henderson Group PLC
Chief Executive Officer, Executive Director

The deal is expected to close in Q2 2017, and Formica and Weil confirm that Janus' biggest shareholder, Dai-ichi Life, is supportive and will stick with Janus Henderson, increasing what will be a nine-percent stake in Janus Henderson to a 15 percent stake. Dai-ichi expects to invest up $500 million more into "the Janus Henderson Global Investors product range."

Loeb Spencer House Partners advised Janus on the deal, while Bank of America Merrill Lynch and Centerview Partners advised Henderson. Janus Henderson is expected to stick with the NYSE (like Janus) for its primary listing, while also staying on the ASX. (Henderson is currently listed on both the LSE and the ASX.)

Weil calls the deal "a transformational combination for both organizations." Janus Henderson will have about 2,300 people across 29 locations around the globe, generating $700 million in 2015 EBITDA from $2.2 billion in revenue.

Per the merger announcement this morning, the Janus and Henderson folks see big opportunity for growth here in the U.S. after the merger. They list "U.S. retail, where Janus' approximately U.S. $116 billion of AUM is significantly larger than Henderson's U.S. retail business of approximately U.S. $12 billion of AUM," as one of four "revenue growth opportunities" for the future Janus Henderson.

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