Rithm Capital has announced its acquisition of Sculptor Capital Management in a significant transaction valued at $639 million. The deal includes an offer of $11.15 per Class A share of Sculptor.
Continuity and Strong Leadership
Sculptor's dedicated investment and leadership teams will remain intact, playing pivotal roles within the organization. Notably, some key members of Sculptor leadership have committed to voting their shares, representing 26% of the total outstanding voting shares, in favor of the transaction.
A Promising Future
Following the completion of the acquisition, Sculptor will operate as a subsidiary under Rithm's umbrella. Jimmy Levin will continue leading Sculptor as the executive managing partner, reporting directly to Michael Nierenberg, Rithm's chief executive.
Premium Value
With a transaction premium of 18% above the closing price on Friday, this acquisition showcases the commitment Rithm has made to acquiring Sculptor's assets and bolstering its portfolio.
Financial Implications
Rithm anticipates the transaction to have a neutral impact on earnings in 2024. However, it is expected to be accretive in 2025. The funding for this transaction will primarily come from Rithm's cash reserves and available liquidity, ultimately benefiting Rithm shareholders in 2025.
Anticipated Timeline
The successful closing of this transaction is projected to occur during the fourth quarter of 2023.
