10:17 AM EDT, 10/08/2024 (MT Newswires) -- Ares Management ( ARES ) said Tuesday that it agreed to purchase the international business of GLP Capital Partners and certain of its affiliates in a cash-and-stock deal worth roughly $3.7 billion.

The consideration is composed of $1.8 billion in cash and $1.9 billion in Ares' class A shares, subject to adjustments, according to a joint statement. The transaction excludes GLP Capital's operations in China and existing capital commitments to certain managed funds. GLP Capital is the investment and asset management firm of GLP Pte.

The deal, which requires approval from regulators, is expected to complete in the first half of next year. Ares said it secured a fully committed bridge financing for the acquisition.

"As a combined business, we believe that Ares' and GCP International's experienced management teams, highly collaborative cultures and investment track records will create a powerhouse in global real assets investing," Ares Chief Executive Michael Arougheti said in the statement.

As of June 30, GLP Capital's international business had $44 billion in assets under management. Ares expects the acquisition to nearly double Ares Real Estate's AUM to about $96 billion across markets in North America, Europe, Asia and Latin America.

Alternative investment manager Ares estimates the deal to be modestly accretive to its after-tax realized income on a per-share basis in the first calendar year after completion, with "meaningfully" faster accretion projected in the future.

The deal will follow GLP Capital separating its international operations from the remaining business, which will remain headquartered in Singapore. Michael Steele, president of the international division, and the leadership teams in charge of managing and operating funds in the US, Japan, Europe, Brazil and Vietnam will join Ares.

"We are excited for the new opportunities the transaction will create for our current clients, and we look forward to continuing to partner with teams across GCP International and Ares to drive success for the combined business," according to GLP CEO Ming Mei.

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