CD&R Offers RIA Aggregator Focus Financial $4.1B in Take Private Deal

Focus Financial Partners Inc. is discussing the potential sale to buyout firm Clayton Dubilier & Rice, LLC for $53 per share in cash, or approximately $4.1 billion, a deal that would take the registered investment advisory firm acquirer private.

The offered share price represents a 36% premium to its 60-day volume-weighted average price as of Wednesday’s close and a 48% premium to its closing stock price on December 28, 2022.

“CD&R has communicated that its latest non-binding offer of $53 per share represented its ‘best and final’ offer and that it was submitted with the understanding that there would be no further price negotiations,” Focus said. “CD&R has also proposed that the transaction would be subject to a non-waivable approval of a majority of the voting power of disinterested shareholders.”

Funds managed by Stone Point Capital, which took Focus public along with private equity investor KKR after acquiring most of Focus for $2 billion in 2017, could retain a portion of its interest in the firm and provide new equity financing for the transaction. KKR has exited its position.

“Negotiations regarding definitive terms and agreements are ongoing and there is no certainty that final terms of any transaction will be agreed upon or, if agreed upon, completed,” Focus said.

New York City-based Focus, led by CEO Rudy Adolf, owns 87 “partner” RIAs after making more than 250 standalone acquisitions since 2006. Notable Focus-backed RIAs include Buckingham Wealth Partners, The Colony Group and SCS Financial.

Jefferies and Goldman Sachs are advising the special committee of Focus’s board that is negotiating with CD&R.