Mizuho to Buy Boutique Investment Bank Greenhill for $550M

Japan’s Mizuho Financial Group expanded its reach into US investment banking through a deal to buy M&A and restructuring specialist Greenhill & Co. in an all-cash transaction of $15 per share with an enterprise value of $550 million, including debt.

The offer price marks a 121% premium over Greenhill’s closing stock price on Friday, which was before the announcement of the merger. The company’s shares surged 116% on Monday to $14.65 following the announcement.

Greenhill Chairman & CEO Scott Bok will become chairman of the M&A and restructuring advisory business. Current Greenhill co-presidents Kevin Costantino and David Wyles will become co-heads of the business. The Greenhill business will sit within Mizuho’s banking division, led by Michal Katz, head of banking in the Americas.

“Greenhill is a proven industry leader, and its team has led many of the largest and most complex transactions for clients globally, across a wide range of sectors,” said Jerry Rizzieri, President and CEO, Mizuho Securities USA.

Robert Greenhill established the company approximately 30 years ago, and it was one of the first boutique M&A advisers to go public. Shares of the company have fallen off significantly since the IPO after initially surging, as Greenhill has been up against stiff competition from bigger investment banks and peers.

Japanese banks have been growing their operations in the US. While Mitsubishi UFJ and Morgan Stanley have a long-standing partnership, Sumitomo Mitsui Financial Group increased its holdings in Jefferies in April. Nomura purchased boutique Greentech Capital Advisors in 2019.