Global investment firm Kohlberg Kravis Roberts & Co. L.P. says it plans to acquire KKR Financial Holdings LLC in an all-stock agreement that values the specialty finance company at $2.6 billion.
KKR Financial, based in San Francisco, is already managed by the New York-based private equity investment firm but operates as a separate company.
Under the agreement announced Monday, KKR Financial shareholders will receive 0.51 common units of KKR & Co. for each common share they hold. This represents a stock payment of $12.79 per share to KKR Financial shareholder. That’s a 35 per cent premium to its own closing price Monday.
The deal expands KKR & Co.’s assets and is expected to immediately boost its earnings. The companies expect the deal to close in the first half of 2014.