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Patrizia snaps up Whitehelm

Total purchase price based on earn-out structure could reach low three-digit EURm if ambitious revenue growth targets are met


Pete Carvill

German real estate investment manager Patrizia confirmed this week that it was entering a share purchase agreement for infrastructure manager Whitehelm. The deal will see the former triple its infrastructure AUM to around €5bn, which it says that it intends to grow to €15bn to €20bn over the medium term.

An accompanying statement said that Whitehelm currently manages €3.2bn AUM with additional commitments of €1.6bn. It also has over €22bn funds under advice for institutional, government, and private clients in Australia.

Wolfgang Egger, chief executive and founder of Patrizia, provided remarks.

“The combination of our strengths, expertise and global footprint is highly complementary and will enable us to create significantly more investment choices for our clients. Whitehelm and Patrizia also represent a perfect cultural fit.

“We both put clients first to provide superior services. We both have a strong track record as independent investment managers being close to our clients and creating value for them. And we share a clear commitment to sustainability and making an impact. This acquisition represents a key milestone to strengthen our offering as a leading partner for global real assets.”

M&A strategy

The deal’s technical details were supplied. According to Patrizia: “The initial purchase price payment for the fully complementary acquisition is €67m payable in cash and Patrizia treasury shares. The total purchase price is based on an earn-out structure and can reach a low three-digit EURm amount if ambitious mid-term revenue growth targets are met. The earn-out will also be paid in a combination of cash and Patrizia shares. Whitehelm shareholders have agreed to a lock-up period for the Patrizia consideration shares, fully aligned to the interests of Patrizia shareholders.”

According to Pensions&Investments, Patrizia plans to grow its assets by 15% each year through organic growth and mergers and acquisitions. This growth will form part of its aim to have increase its infrastructure AUM from €5bn to €15bn to €20bn in the medium term.