American Express Co. has confirmed an agreement to acquire Threadneedle Asset Management Holding from Zurich Financial Services Group in a $570 million cash deal.
In a press release Monday, American Express said the decision to acquire Threadneedle, a U.K.-based asset management company with more than $75 billion in assets under management, is part of its overall strategy to expand its financial services operations globally.
"Threadneedle complements the American Express Financial Advisors business," Jim Cracchiolo, chairman and chief executive of American Express Financial Advisors, said in a release.
"We see tremendous potential for long-term growth in the European asset management market, and by adding Threadneedle to our global asset management businesses American Express will be well-positioned to capitalize on this opportunity."
American Express sees no material impact from the transaction earnings in 2003, but sees the deal as "slightly accretive to EPS in 2004 with additional benefits in future years."
American Express agreed to pay Zurich Financial Services GBP 340 million in cash when the deal closes. The transaction, subject to regulatory approval, is expected to close in the last quarter of 2003.
