Summary
KKR & Co. Inc. (KKR) has filed an 8-K report announcing a material definitive agreement to acquire the remaining 36.7% of Global Atlantic Financial Group LLC (Global Atlantic) that it does not currently own. This transaction, structured as a merger of KKR's subsidiary Merger Sub with Global Atlantic, will make Global Atlantic a wholly-owned subsidiary of KKR. The acquisition is expected to close in the first quarter of 2024, with an aggregate cash purchase price estimated at approximately $2.7 billion, subject to certain adjustments based on Global Atlantic's book value. This move signifies KKR's full consolidation of its highly successful insurance and retirement services business, Global Atlantic. While KKR will acquire the minority stake in cash, certain Global Atlantic employees are expected to roll over a majority of their equity interests into KKR equity, aligning their long-term incentives with KKR. The outstanding debt of Global Atlantic will remain with Global Atlantic entities and will not be assumed by KKR. The filing also includes a joint press release and a presentation discussing the merger and other strategic initiatives, underscoring the significance of this step for KKR's strategic growth and operational integration.
Key Highlights
- 1KKR to acquire the remaining 36.7% of Global Atlantic, making it a wholly-owned subsidiary.
- 2Estimated cash purchase price for the acquisition is approximately $2.7 billion.
- 3Transaction is structured as a merger and is anticipated to close in the first quarter of 2024.
- 4Minority equityholders of Global Atlantic will receive cash consideration based on Global Atlantic's book value, subject to adjustments.
- 5Certain Global Atlantic employees are expected to roll over equity into KKR equity.
- 6Global Atlantic's outstanding debt will remain solely with Global Atlantic entities, not assumed by KKR.
- 7The filing includes a joint press release and presentation discussing the merger and strategic initiatives.