On completion of the deal, both CIR and Merrill Lynch made a cash injection of approximately €100 million, and undertook to fund the development of new initiatives from Oakwood of up to a further €100 million.
The closing of the deal took place after approval was obtained from the European Antitrust Authorities and the British and Australian Financial Services Regulators. CIR and Merrill Lynch have each acquired a stake of 47.4% in Oakwood with the remaining capital being held by minority investors and Oakwood’s management team.
Commenting on today’s announcement, Mike Culhane, chief executive of Oakwood, said: “I welcome Merrill Lynch and CIR as investors in Oakwood. I believe that with their support, we are better positioned than ever before to capitalise on opportunities in the market and to further expand the success of Oakwood’s business. Oakwood has a strong track record of developing growth businesses and we now have partners that will allow us to further develop our existing businesses and will enhance our strategic capabilities, as we turn our attention to future investments.”
Rodolfo De Benedetti, chief executive of CIR, commented: “This investment in Oakwood reinforces our strategy of expanding into high growth businesses with the potential of significant value creation. We are impressed by the results reached so far, by the commitment and the drive of Oakwood’s management team, and we are happy to partner with a leading global financial institution like Merrill Lynch”.
Daniel Pace, managing director of Merrill Lynch added: “Oakwood and its associated businesses has been a client of Merrill Lynch for many years. CIR is also an important and valued client of Merrill Lynch. We’re pleased to have the opportunity to work with both organisations in pursuing specialty finance business..”
