Summary
Marsh & McLennan Companies, Inc. (MMC) announced the completion of the sale of its investment management subsidiary, Putnam Investments Trust, to Great-West Lifeco Inc. The transaction, which closed on August 3, 2007, involved a cash consideration of approximately $3.9 billion. Following taxes and minority interests, MMC anticipates net proceeds of around $2.5 billion from this divestiture. This sale represents a significant strategic shift for MMC, as Putnam had already been classified as discontinued operations since the first quarter of 2007. Investors should note that the financial impact of Putnam has been segregated and reported separately in MMC's recent financial statements. The substantial cash infusion from this sale provides MMC with increased financial flexibility, which could be allocated towards debt reduction, share repurchases, or future strategic investments.
Key Highlights
- 1Completion of the sale of Putnam Investments Trust to Great-West Lifeco Inc.
- 2Transaction closed on August 3, 2007.
- 3Cash consideration received was approximately $3.9 billion.
- 4Estimated net proceeds for MMC after taxes and minority interest are around $2.5 billion.
- 5Putnam Investments Trust was previously classified as discontinued operations by MMC.
- 6This divestiture marks a strategic realignment for Marsh & McLennan Companies.