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T. Rowe Price Closes Acquisition of Oak Hill Advisors.

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MANews-(C)2009-2022

Baltimore, US-based investment management organisation T. Rowe Price Group, Inc. (NASDAQ-GS: TROW) has closed the acquisition of 100% of the equity of New York-based alternative credit manager Oak Hill Advisors, L.P. for up to USD 4.2bn, the company said.

Under the terms of the transaction, USD 3.3bn was payable at closing, with approximately 74% in cash and 26% in T. Rowe Price common stock, and up to an additional USD 900m in cash upon the achievement of certain business milestones beginning in 2025.

The purchase price includes the retirement of OHA debt outstanding at closing. Excluding amortisation of intangibles and the expense impact of the earnout, the transaction is expected to be accretive to T. Rowe Price diluted earnings per share by a low-to-mid single digit percentage in 2022.

OHA, a leading alternative credit manager, will become T. Rowe Price's private markets platform, accelerating T. Rowe Price's expansion into alternative investment markets and complementing T. Rowe Price's existing global platform and ongoing strategic investments in its core investments and distribution capabilities.

The two firms expect to leverage complementary distribution opportunities. In addition, they plan to co-develop new products and strategies for T. Rowe Price's wealth and...

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