Ares Management Corporation (ARES), a leading alternative investment manager, announced on Tuesday its agreement to acquire the international operations of GLP Capital Partners Limited, excluding its endeavors within Greater China. This strategic acquisition, valued at $3.7 billion, will be executed through a combination of cash and stock.
The financial arrangement details a payment of approximately $1.8 billion in cash complemented by around $1.9 billion in Ares Class A common shares. As of June 30, 2024, GCP International boasts assets under management (AUM) of $44 billion. With this acquisition, Ares aims to effectively double its AUM, bringing its total to roughly $96 billion, spanning North America, Europe, Asia, and Latin America.
The acquisition is poised to incrementally bolster Ares' profitability within the initial full calendar year post-transaction, with projections indicating increased earnings in subsequent years.
Ming Mei, Co-Founder and CEO of both GCP and GLP, expressed strong confidence in the merger, stating, "The integration of GCP International's and Ares' investment and operational competencies, extensive networks, and synergistic cultures is set to establish a preeminent real assets investment management entity globally."
Completion of this transaction is anticipated in the first half of 2025.
