No wonder MK is looking for a new job. Check this press release out.
Riley G
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EVEREN Capital Corporation to Acquire Principal Financial Securities In Cash Deal
PR Newswire - December 15, 1997 07:52
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CHICAGO, Dec. 15 /PRNewswire/ -- EVEREN Capital Corporation (NYSE: EVR)
and The Principal Financial Group today announced they have signed a
definitive agreement for EVEREN Capital to acquire The Principal Financial
Group's Principal Financial Securities, Inc. subsidiary for $75 million in
cash. The transaction, which requires regulatory approvals, is expected to
close in early January 1998.
Together, the two firms hold approximately $55 billion of client assets in
more than 600,000 active accounts. Based on historical results for the nine
months ended Sept. 30, 1997, the combined companies produced pro forma
annualized net revenues, which include net interest, of $699 million. EVEREN
Capital Corporation believes the transaction will be break-even or modestly
accretive in 1998 and accretive to earnings per share in 1999.
EVEREN Capital Corporation Chairman and Chief Executive Officer
James R. Boris said, "EVEREN has enjoyed great success as a full-service
securities brokerage by combining prominent regional firms with commanding
shares of their local markets into a highly productive national branch
network.
"The acquisition will further advance our progress by solidifying EVEREN's
competitiveness in several key markets. Principal Financial Securities' well-
established presence in its home state of Texas, for example, will provide us
with an enviable position in one of the fastest-growing state economies in the
nation."
"The sale of Principal Financial Securities to EVEREN is consistent with
our strategic direction. As we move forward in growing our global operations,
our focus will be on providing retirement and related financial services to
small- and medium-size businesses and their employees. We'll also continue to
focus on our established domestic businesses," said J. Barry Griswell,
executive vice president, The Principal Financial Group. "This sale is a good
fit for us. We are pleased to forge this relationship with a firm of the size
and caliber of EVEREN."
As of Sept. 30, 1997, Principal Financial Securities had stockholders'
equity of approximately $63.8 million, annualized net revenues of
approximately $132 million, 400 investment consultants and $8 billion of
client assets under management.
As part of the transaction, EVEREN will offer retention incentives to
Principal investment consultants. The combined organization will have more
than 1,700 investment consultants operating out of a nationwide network of
approximately 185 branch offices. Integrating the two firms will result in
significant gains in numerous markets, notably in the Southwest and upper
Midwest.
In capital markets, the combined firms will operate fully integrated
corporate finance and equity research functions focused on select industries.
These include: real estate, energy, consumer/retail, financial services,
health care, industrial/capital goods, technology and telecommunications.
Other complementary investment banking activities will include fixed income
capital markets, institutional sales and trading.
EVEREN expects to achieve certain expense savings from the elimination of
redundant operations. The approximate amount of these savings will not be
determined until integration plans regarding the two firms' operations have
been further developed.
EVEREN Capital Corporation is the parent company of EVEREN Securities,
Inc., a national full-service brokerage firm, and EVEREN Clearing Corp., which
provides securities execution and clearing services and commodities clearing
services for EVEREN Securities and other broker-dealers. Headquartered in
Chicago, EVEREN Capital is among the largest majority employee-owned companies
in the nation.
EVEREN Securities serves individual, corporate, municipal and institutional
clients through an integrated network of more than 1,300 investment
consultants in 135 offices. The firm combines the capital markets resources
of a large national organization with the personalized service and dedication
of a smaller firm. Currently, EVEREN holds more than $47 billion of client
assets in approximately 500,000 active client accounts. EVEREN Securities,
Inc. and EVEREN Clearing Corp. are members of the Securities Investor
Protection Corporation, the New York Stock Exchange and other principal
exchanges.
Principal Financial Securities, Inc. is a leading U.S. investment banking
and securities brokerage firm based in Dallas, with 55 branch offices in 15
states across the Southwest, Midwest and West. It is a member company of The
Principal Financial Group and a wholly owned subsidiary of Principal Mutual
Life Insurance Company.
The Principal Financial Group is a diversified family of insurance and
financial services companies with more than $67 billion in assets under
management. Its member companies serve more than 9 million customers by
providing a full line of individual and group insurance and financial
products. Its flagship and largest member, Principal Mutual Life Insurance
Company, is the seventh largest U.S. life insurance company in assets.
This news release contains estimates of future operating results for both
EVEREN Capital Corporation and Principal Financial Securities, Inc. These
estimates constitute forward-looking statements which involve significant
risks and uncertainties. Actual results may differ materially from the
results discussed in the forward-looking statements. Factors that may cause
such a difference include: expected cost savings from the acquisition cannot
be fully realized or realized within the anticipated time frame; revenues
following the acquisition are lower than expected; and competition among
financial institutions intensifies significantly. Also, costs or difficulties
related to combining the operations of EVEREN Capital and Principal Financial
Securities are greater than expected; general economic conditions, either
nationally or in the states in which the combined company will be doing
business, are less favorable than expected; and legislation or regulatory
changes adversely affect the businesses in which the combined company will be
engaged.
SOURCE EVEREN Capital Corporation
/CONTACT: Edgar P. McDougal, 312-574-5791, or Elizabeth Cassanos,
312-574-5273, Media Relations, or Caron L. Schreiber, Investor Relations,
312-574-5724, all of EVEREN Capital Corporation; or Sara Opie, Media Relations
of The Principal Financial Group, 515-247-6634 |
