Yahoo Finance Fortress (FIG) to Divest Logan Circle Partners, Stock Down
Fortress Investment Group LLC FIG entered into an agreement to divest its 100% stake in Logan Circle Partners to MetLife, Inc. MET. The all cash deal is valued at $250 million and is expected to close in third-quarter 2017.
Shares of Fortress declined slightly following the news, indicating that the investors are pessimistic about the move.
Logan Circle Partners was founded in 2007 by Chief Executive Jude Driscoll as a joint venture between management and Guggenheim Partners LLC. In 2010, Fortress acquired it for about $21 million. As of Mar 31, 2017, Logan Circle Partners had more than $33 billion in assets under management.
Per the terms of the deal, MetLife will retain the employees of Logan Circle Partners.
Moelis & Co served as financial adviser and Morgan, Lewis & Bockius was the legal adviser to MetLife. Bank of America Corporation BAC and Skadden, Arps, Slate, Meagher & Flom were the advisers to Fortress.
In Feb 2017, Fortress had announced a merger agreement with SoftBank Group Corp. SFTBY for about $3.3 billion in cash. Per the deal, SoftBank will complete the acquisition of Fortress in the second half of 2017.
Fortress’ financial performance has been fluctuating over the last few quarters because of its efforts to grow inorganically.
Backed by these efforts, shares of Fortress have gained 53% in the last six months, outperforming the Zacks Categorized Financial - Investment Management industry’s rally of 14%.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Fortress Investment Group LLC (FIG) : Free Stock Analysis Report
MetLife, Inc. (MET) : Free Stock Analysis Report
Softbank Corp. (SFTBY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
