8-KAcquisitions & DispositionsRegulation FDOther Events+1

KKR & Co. Inc. 8-K Report, Acquisition Completed (Feb 2, 2021)

Filed February 2, 2021For Securities:KKRKKRTKKR-PDKKRS

Summary

KKR & Co. Inc. (KKR) announced on February 1, 2021, the completion of its acquisition of Global Atlantic Financial Group Limited ("Global Atlantic") through its subsidiary, Magnolia Parent LLC, which has been renamed The Global Atlantic Financial Group LLC ("TGAFG"). This significant transaction involved a total purchase price of $4.7 billion, subject to post-closing adjustments. As a result of the acquisition, KKR now owns 61.1% of TGAFG. Notably, certain previous shareholders of Global Atlantic and new co-investors have taken equity stakes in TGAFG, with some Global Atlantic management also investing in KKR common stock. The full financial statements and pro forma information related to this acquisition will be filed via amendment within 71 days.

Key Highlights

  • 1KKR completed the acquisition of Global Atlantic for $4.7 billion on February 1, 2021.
  • 2KKR's subsidiary, Magnolia Parent LLC, has been renamed The Global Atlantic Financial Group LLC (TGAFG).
  • 3KKR now holds a 61.1% ownership stake in TGAFG, subject to post-closing adjustments.
  • 4Former Global Atlantic shareholders and new co-investors have acquired stakes in TGAFG.
  • 5Members of Global Atlantic's senior management invested $38.5 million in KKR common stock, with restricted transferability for three years.
  • 6Detailed financial statements and pro forma information for the acquisition will be filed at a later date.
  • 7The transaction was structured through a merger of KKR subsidiaries with Global Atlantic and GA Life.

Frequently Asked Questions

This 8-K filing formally announced the completion of KKR's acquisition of Global Atlantic Financial Group Limited and provided details regarding the transaction structure, purchase price, and post-acquisition ownership percentages.

The total purchase price for Global Atlantic was $4.7 billion, subject to certain post-closing adjustments. Following the closing, KKR owns 61.1% of the newly formed holding company, TGAFG.

The filing states that the required financial statements of the acquired business and pro forma financial information will be filed by amendment no later than 71 calendar days after the filing of this report.

Members of Global Atlantic's senior management invested $38.5 million in KKR common stock. These shares have a three-year lock-up period, indicating a commitment to KKR and aligning management interests with those of KKR shareholders post-acquisition.