Piper Jaffray (NYSE: PJC), a leading investment bank and asset
management firm, today announced that it has signed a definitive
agreement to sell Fiduciary Asset Management LLC (FAMCO), a division
within its asset management business. Wiley Angell, its chief executive
officer, will acquire the business in a transaction valued at $4 million.
In 2012, Piper Jaffray transitioned ownership of its FAMCO MLP product
from FAMCO to its primary asset management subsidiary, Advisory
Research. While the restructuring generated revenue and cost synergies
for the firm, the remaining FAMCO business was no longer a strategic fit
with the overall asset management business. As a result, Piper Jaffray
and Angell entered into discussions to facilitate a transition of the
remaining business, as Angell was one of FAMCO’s founding members.
“We continue to focus efforts on growing our flagship asset management
brand, Advisory Research, and taking steps that add value for
shareholders,” commented Andrew Duff, Piper Jaffray Companies chairman
and CEO. “Our resulting platform represents a more streamlined business
and gives FAMCO the opportunity to operate independently.”
Commenting on the sale, Angell said “We have enjoyed our relationship
with Piper Jaffray, and we are excited about returning to our roots as
an independent company. We view this transaction as an opportunity to
continue to provide excellent services to our clients, while incenting
our team and building for the future.”
FAMCO had previously been classified as held for sale and reported in
discontinued operations. The sale is subject to customary closing
conditions, and expected to close during the second quarter of 2013.
About Piper Jaffray
Piper Jaffray is a leading investment
bank and asset management firm serving clients in the U.S. and
internationally. Proven advisory teams combine deep industry, product
and sector expertise with ready access to capital. Founded in 1895, the
firm is headquartered in Minneapolis and has offices across the United
States and in London and Zurich. www.piperjaffray.com
About Advisory Research, Inc.
Based in Chicago, Advisory
Research is a value-oriented investment firm providing domestic and
international equity strategies as well as fixed income assets for
institutional, private clients and investment advisors. Advisory
Research is a division of Piper Jaffray Asset Management Inc. www.advisoryresearch.com
About FAMCO
Fiduciary Asset Management LLC (FAMCO) is an
institutional asset management firm with $3.7 billion in assets under
management. The firm is based in St. Louis, Mo. and was established in
1994. www.famco.com
Cautionary Note Regarding Forward-Looking Statements
This
announcement 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 may not be
completed, or completed within the expected timeframe; (2) costs
relating to the disposition of the FAMCO business may be greater than
expected; and (3) 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, 2012, and updated in our subsequent reports filed with the SEC.
These reports are available at our Web site at www.piperjaffray.com
and at the SEC Web site at 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.
© 2013 Piper Jaffray Companies
