Sun Life Plans to Take Majority Stake in Advisors Asset Management

By Stephen Nakrosis

Sun Life Financial Inc. said Thursday it plans to acquire a majority stake in Advisors Asset Management, Inc. through SLC Management, Sun Life's institutional fixed income and alternatives asset manager.

Advisors Asset Management oversees $41.4 billion in assets as of July 31 and has a team of over 270 professionals in 10 offices across eight U.S. states. The deal will see Sun Life pay $214 million for a 51% interest in AAM, and includes a put/call option to acquire the remaining 49% starting in 2028.

Sun Life said Advisors Asset Management, or AAM, is slated to become the U.S. retail distribution arm of SLC Management. AAM will receive exclusive rights to market and promote SLC Management's specified alternative investment products to the U.S. retail market, Sun Life said.

Sun Life also said it is committing to invest up to $400 million to launch SLC Management alternative products for the U.S. retail market, which will be distributed by AAM.

The deal is expected to close in the first half of next year, the company said.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

September 01, 2022 18:01 ET (22:01 GMT)

Sun Life Financial (TSX:SLF)
Historical Stock Chart
From Aug 2024 to Sep 2024