Summary
Marsh & McLennan Companies, Inc. (MMC) has announced a significant strategic divestiture through the sale of its subsidiary, Putnam Investments Trust (Putnam), to Great-West Lifeco Inc. for approximately $3.9 billion in cash. This transaction, expected to close in mid-2007, subject to regulatory and client approvals, represents a substantial capital infusion for MMC. The sale price is subject to certain adjustments related to Putnam's equity and asset management revenue, as detailed in the Stock Purchase Agreement. MMC has also agreed to customary representations, warranties, covenants, and indemnification obligations, including non-competition clauses and indemnification for specific litigation and regulatory matters involving Putnam.
Key Highlights
- 1Sale of Putnam Investments Trust to Great-West Lifeco Inc. for $3.9 billion cash.
- 2Transaction is subject to customary closing conditions, including regulatory and client approvals.
- 3Expected closing date for the transaction is mid-2007.
- 4Purchase price is subject to adjustments based on Putnam's financial performance (equity and revenue) between late 2006 and closing.
- 5MMC has agreed to non-competition obligations post-closing.
- 6MMC will indemnify Great-West Lifeco Inc. for certain existing litigation and regulatory matters related to Putnam.