SCU - Rithm Capital to acquire Sculptor Capital for $639M
2023-07-24 07:27:31 ET
Rithm Capital ( NYSE: RITM ) agreed to acquire Sculptor Capital Management ( NYSE: SCU ) an alternative asset manager with $34B in assets under management, in a transaction valued at ~$639M that significantly builds Rithm's presence in alternative asset management, the companies said Monday.
Under the deal, Rithm ( RITM ) will pay $11.15 in cash per Sculptor ( SCU ) class A share, representing an 18% premium to Sculptor's closing price of $9.42 on Friday. Sculptor shares jumped 16% to $10.95 in premarket trading at 7:23 AM ET.
"This transaction is transformational for Rithm," said Rithm Chairman, CEO, and President Michael Nierenberg, adding that it combines Scuptor's AUM with Rithm's ( RITM ) $7B of permanent equity capital and $30B+ balance sheet.
The deal is expected to be neutral to Rithm's ( RITM ) 2024 earnings and add to its earnings in 2025. The company expects to fund the deal with its cash on hand and available liquidity.
Sculptor's investment and leadership teams will stay in their roles and certain members of Sculptor ( SCU ) leadership have agreed to vote their shares, representing ~26% of Sculptor's outstanding voting shares, in favor of the transaction.
Upon completion, Sculptor will operate as a subsidiary of Rithm ( RITM ) and will continue to be led by Jimmy Levin, as chief investment officer and executive managing partner, reporting to Nierenberg.
In November, Sculptor's ( SCU ) board had formed a committee to explore potential interest from third parties.
Confernence call at 8:00 AM ET.
More on Sculptor and Rithm:
- Rithm Capital buy $1.4B of Marcus loans from Goldman Sachs
- Rithm Capital: I Sold the Preferreds to Buy the 11% Yielding Commons
- Rithm Capital spreads wings after rebranding, shifting to internal management
- Sculptor Capital Management: Boardroom Battle Has Created an Attractive Opportunity
- Sculptor Capital upgraded to Outperform at Credit Suisse as detente reached
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Rithm Capital to acquire Sculptor Capital for $639M