Piper Jaffray Companies to Add Asset Management Capability; Signs Definitive Agreement to Acquire Fiduciary Asset Management, LL
13 April 2007 - 11:00PM
PR Newswire (US)
MINNEAPOLIS, April 13 /PRNewswire-FirstCall/ -- Piper Jaffray
Companies (NYSE:PJC) today announced the signing of a definitive
agreement to acquire Fiduciary Asset Management, LLC (FAMCO), a St.
Louis-based investment management firm, for approximately $66
million in cash at the time the transaction closes and future cash
consideration based on financial performance. With this
acquisition, Piper Jaffray will enter the asset management business
with a strong foundation from which it can grow over time. Piper
Jaffray plans to enhance the business through additional product
offerings and distribution capability and an expanded client base.
The transaction is expected to close in the third quarter of 2007
and is subject to customary regulatory approvals and client
consents. FAMCO, established in 1994, has approximately $9.0
billion of assets under management. The company serves its clients
through separately managed accounts and closed end funds and offers
an array of investment products including traditional, quantitative
and hedged equity, master limited partnerships, and fixed income.
The current management team, which consists of Charles Walbrandt,
Joseph Gallagher, Wiley Angell, Jim Cunnane, Jr. and Mo Riad, will
continue to manage the business. Walbrandt, CEO of FAMCO, will
continue to lead the team and will report to Andrew Duff, chairman
and CEO of Piper Jaffray. "After considerable market evaluation, we
believe FAMCO provides the right opportunity for Piper Jaffray to
enter the asset management business," Duff said. "FAMCO has a
talented, cohesive team of professionals who have produced
competitive and consistent results for their clients since its
inception. Its dedication to building long-lasting client
relationships through placing its clients' interest first make it a
strong cultural fit with Piper Jaffray. FAMCO will continue to
focus on what it does best-acting as a trusted advisor in managing
client assets." "We are pleased to announce our partnership with
Piper Jaffray," said Walbrandt, CEO of FAMCO. "We will continue to
provide hands-on service and customized solutions that our clients
expect from us. We look forward to creating additional product
opportunities to expand our client relationships." FAMCO has
approximately 50 employees and its headquarters will remain in St.
Louis, MO. Investor Conference Call Andrew S. Duff, chairman and
chief executive officer of Piper Jaffray Companies, and Thomas P.
Schnettler, chief financial officer of Piper Jaffray, will host a
conference call to discuss the transaction on April 13, at 11:30
a.m. ET (10:30 a.m. CT). The call can be accessed by dialing (866)
244-9933, or (706) 758-0864 international, and referring to
conference ID 5358601 and the leader's name, Andrew Duff. Slides
that accompany the call can be accessed at
http://www.piperjaffray.com/ . Callers should dial in at least 15
minutes early to receive instructions. A replay of the conference
call will be available beginning at approximately 1:30 p.m. ET
April 13 by calling (800) 642-1687, or (706) 645-9291
international. About Piper Jaffray Piper Jaffray Companies is a
leading, international middle-market investment bank and
institutional securities firm, serving the needs of middle market
corporations, private equity groups, public entities, nonprofit
clients and institutional investors. Founded in 1895, Piper Jaffray
provides a comprehensive set of products and services, including
equity and debt capital markets products; public finance services;
mergers and acquisitions advisory services; high-yield and
structured products; institutional equity and fixed- income sales
and trading; and equity and high-yield research. With headquarters
in Minneapolis, Piper Jaffray has 25 offices across the United
States and international locations in London and Shanghai. Piper
Jaffray & Co. is the firm's principal operating subsidiary.
(NYSE:PJC) ( http://www.piperjaffray.com/ ) Cautionary Note
Regarding Forward-Looking Statements This press release contains
forward-looking statements. Statements that are not historical or
current facts, including statements about beliefs and expectations,
are forward-looking statements. These forward-looking statements
cover, among other things, the future prospects of Piper Jaffray
Companies and its asset management business. Forward-looking
statements involve inherent risks and uncertainties, and important
factors could cause actual results to differ materially from those
anticipated, including the following: (1) the transaction announced
in this press release may not be completed, or completed within the
expected timeframe; (2) costs or difficulties relating to the
integration of the FAMCO and Piper Jaffray businesses may be
greater than expected and may adversely affect our results of
operations and financial condition; (3) the expected benefits of
the transaction and entering the asset management business,
including revenue growth, increased profitability and shareholder
returns, may take longer than anticipated to achieve and may not be
achieved in their entirety or at all; (4) strategies with respect
to the redeployment of proceeds from the sale of our Private Client
Services business, including entering the asset management
business, may take longer than anticipated to be realized or may
not be achieved in their entirety or at all; (5) developments in
market and economic conditions have in the past adversely affected,
and may in the future adversely affect, the business and
profitability of Piper Jaffray; (6) Piper Jaffray may not be able
to compete successfully with other companies in the financial
services industry; and (7) other factors identified under "Risk
Factors" in Part I, Item 1A of our Annual Report on Form 10-K for
the year ended December 31, 2006, and updated in our subsequent
reports filed with the SEC. These reports are available at our Web
site at http://www.piperjaffray.com/ and at the SEC Web site at
http://www.sec.gov/ . Forward-looking statements speak only as of
the date they are made, and we undertake no obligation to update
them in light of new information or future events. Since 1895.
Member SIPC and NYSE. DATASOURCE: Piper Jaffray Companies CONTACT:
Investors, Jennifer A. Olson-Goude, +1-612-303-6277, or Media, Rob
Litt, +1-612-303-8266, both of Piper Jaffray Companies Web site:
http://www.piperjaffray.com/
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