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  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • First Investors Consolidated Corporation
  • Foresters
  • Other
  • September 21, 2010
  • $6.6 Billion

Seller Details

First Investors Consolidated Corporation (FICC), together with its subsidiaries, is a privately-held diversified financial services organization that provides investment management services to the broad middle market as the investment advisor to, and the distributor for, the First Investors family of mutual funds and life insurance products. The First Investors family of companies
includes: First Investors Corporation (FIC), a registered broker-dealer; First Investors Management Company, Inc. (FIMCO), a registered investment advisor responsible for portfolio management of the First Investors funds; Administrative Data Management Corporation (ADM), a transfer agent; and First Investors Life Insurance Company (FIL).

Since its founding in 1930, First Investors has followed the guiding principle of personal service to connect “Main Street to Wall Street,” by addressing the financial needs of middle market investors. With corporate headquarters in New York City and administrative offices and a data center in Edison, New Jersey, the company had assets under management (AUM) of US $6.6 billion on behalf of 500,000 accounts as of September 3, 2010.

Buyer Details

Founded in 1874 as a fraternal benefit society, Foresters™ champions the well-being of families through quality life insurance, unique member benefits and inspiring community activities. Foresters has assets of $6.2 billion with liabilities of $4.8 billion resulting in a surplus of $1.4 billion (all figures in Canadian dollars as of December 31, 2009) and maintains an "A" (Excellent) rating by A.M. Best*. Foresters shares its financial strength with more than 675,000 members in Canada, the United States and the United Kingdom. Foresters Equity Services, Inc.†, a wholly owned subsidiary of Foresters, offers investment products in the U.S. Unity Life of Canada‡, a wholly owned subsidiary of Foresters, represents Foresters in Canada.

Transaction Summary

On September 21, 2010, The Independent Order of Foresters and First Investors Consolidated Corporation (“FICC”) announced the signing of a definitive agreement in which Foresters will acquire a 100% ownership position in FICC. The acquisition includes FICC’s registered broker-dealer, its registered investment advisory firm, transfer agent and life insurance operations.

The transaction, which is subject to various conditions, including regulatory approvals in the United States and Canada, and FICC fund shareholder approval, is expected to close by December 31, 2010. The value of the transaction was not disclosed. Upon completion of the transaction, FICC will continue to operate with its current management and staff as a standalone entity within Foresters’ U.S. Division, and will market its products and services under the First Investors brand. Chris Pinkerton, President of Foresters’ U.S. Division, will assume responsibility as FICC’s President and CEO, in addition to his current responsibilities. Berkshire Capital and Macquarie Capital are acting as financial advisors and Kramer Levin Naftalis & Frankel is legal counsel to First Investors for this transaction. Scotia Capital advised Foresters on the deal. 

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