NEW YORK, Nov. 17, 2016 /PRNewswire/ -- HRG Group,
Inc. ("HRG" or the "Company"; NYSE: HRG), a holding company
that conducts its operations principally through Spectrum Brands
Holdings, Inc. (NYSE: SPB), a branded consumer products company,
and Fidelity & Guaranty Life (NYSE: FGL), a life insurance and
annuity products company, today announced that Omar Asali, President and Chief Executive
Officer of HRG, plans to leave the Company in the second half of
fiscal 2017 to establish a private investment vehicle that will
make long-term investments in private and public
companies.
Since HRG's inception in 2011, Mr. Asali has been responsible
for overseeing the day-to-day activities of the Company and
establishing the overall business strategy for HRG and its
subsidiaries, including M&A and capital markets activities.
During his tenure with the Company, HRG's market capitalization has
increased from $140 million to
today's market capitalization of approximately $3 billion, and the Company's key subsidiaries
have achieved strong returns. In the five-year period ended
September 30, 2016, SPB's share price
has appreciated 500% compared to a gain of 92% for the S&P 500
and the Company's investment in FGL in 2011 has compounded at a
total rate of return of nearly 400%.
The Company also announced today that its Board of Directors has
initiated a process to explore the strategic alternatives available
to the Company with a view to maximizing shareholder value. The
Company's Board will work with HRG's management and will retain
financial and legal advisors to assist it with this review.
Strategic alternatives may include, but are not limited to, a
merger, sale or other business combination involving the Company or
its assets.
Drew McKnight, an HRG director,
said, "I would like to take this opportunity to recognize Omar's
contributions and the critical role that he has played in creating
value for all HRG shareholders. On behalf of the Board, I would
like to thank Omar and wish him the best with his future
endeavors."
Mr. Asali said, "I would like to thank the HRG Board and
employees, in particular David
Maura, for all of their contributions to the success of the
Company. I would also like to thank Philip
Falcone for giving me the opportunity at HRG. I am proud of
our accomplishments and will leave HRG for my next chapter knowing
that the Company is well positioned for the next stage of its
evolution."
"Our management team and the Board have been working to enhance
stockholder value and, after careful review, we have decided that
exploring alternatives to maximize value is in the best interests
of all our stockholders," said Mr. Asali. "HRG owns terrific
businesses that have a strong record of performance, and we believe
that we have a unique opportunity to maximize value for all of our
shareholders."
Mr. Asali further added, "As we have previously disclosed, FGL
and Anbang have extended the outside date for completing FGL's
merger with Anbang Insurance Group from November 7, 2016 to February 8, 2017, pursuant to the Agreement and
Plan of Merger dated November 8,
2015. Both parties are committed to securing the remaining
regulatory approvals and closing the merger as soon as possible,
however, the closing of the merger and the timing thereof is
subject to the regulatory review and approval process, none of
which can be assured."
About HRG Group, Inc.:
HRG Group, Inc. is a holding company that conducts its
operations principally through Spectrum Brands Holdings, Inc.
(NYSE: SPB), a branded consumer products company, and Fidelity
& Guaranty Life (NYSE: FGL), a life insurance and annuity
products company. HRG is headquartered in New York and traded on the New York Stock
Exchange under the symbol HRG. For more information on HRG,
visit: www.HRGgroup.com.
Forward Looking Statements:
"Safe Harbor" Statement Under the Private Securities Litigation
Reform Act of 1995: This document contains, and certain oral
statements made by our representatives from time to time may
contain, forward-looking statements, including those statements
regarding the Company's review of strategic alternatives and FGL's
merger with Anbang Insurance Group, and any expected or anticipated
benefits from the strategic review process and/or FGL's merger with
Anbang Insurance Group. The Company has not set a definitive
schedule to complete its review of strategic alternatives. The
Company does not intend to provide any further updates until such
time as it has entered into definitive documentation with respect
to any strategic transaction. There can be no assurance that this
process will result in a transaction, or if a transaction is
undertaken, as to its terms or timing.
Generally, forward-looking statements include information
concerning possible or assumed future distributions from
subsidiaries, other actions, events, results, strategies and
expectations and are identifiable by use of the words "believes,"
"expects," "intends," "anticipates," "plans," "seeks," "estimates,"
"projects," "may," "will," "could," "might," or "continues" or
similar expressions. Such forward-looking statements are subject to
risks and uncertainties that could cause actual results, events and
developments to differ materially from those set forth in or
implied by such statements. These statements are based on the
beliefs and assumptions of HRG's management and the management of
HRG's subsidiaries. Factors that could cause actual results, events
and developments to differ include, without limitation: that the
review of strategic alternatives at HRG will result in a
transaction, or if a transaction is undertaken, as to its terms or
timing; the ability of HRG's subsidiaries to close previously
announced transactions, including statements regarding the closing
of FGL's merger with Anbang Insurance Group; the ability of HRG's
subsidiaries to generate sufficient net income and cash flows to
make upstream cash distributions; the decision of the boards of
HRG's subsidiaries to make upstream cash distributions, which is
subject to numerous factors such as restrictions contained in
applicable financing agreements, state and regulatory restrictions
and other relevant considerations as determined by the applicable
board; HRG's liquidity, which may be impacted by a variety of
factors, including the capital needs of HRG's subsidiaries; capital
market conditions; commodity market conditions; foreign exchange
rates; HRG's and its subsidiaries' ability to identify, pursue or
complete any suitable future acquisition or disposition
opportunities, including realizing such transaction's expected
benefits and the timetable for, completing applicable financial
reporting requirements; litigation; potential and contingent
liabilities; management's plans; changes in regulations; taxes; and
the risks that may affect the performance of the operating
subsidiaries of HRG and those factors listed under the caption
"Risk Factors" in HRG's most recent Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q, filed with the
Securities and Exchange Commission. All forward-looking
statements described herein are qualified by these cautionary
statements and there can be no assurance that the actual results,
events or developments referenced herein will occur or be
realized. Neither HRG nor any of its affiliates undertake any
obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operation results, except as required by
law.
Investors and Media:
HRG Group, Inc.
James Hart, 212-906-8560
Investor Relations
investorrelations@HRGgroup.com
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SOURCE HRG Group, Inc.