Foresters and First Investors Consolidated Corporation (FICC) today announced that they have entered into a definitive agreement under which Foresters will acquire a 100% ownership interest in FICC and its U.S. asset management and life insurance operations. The value of the transaction is not being disclosed at this time.
Founded in 1930, FICC is a privately held, diversified, financial services organization. Headquartered in New York City, FICC has approximately 400 home office employees and assets under management of US$6.6 billion.
Foresters agreement with FICC includes the holding company and its family of companies including: a registered broker-dealer; a registered investment advisor; a transfer agent and a life insurance company. The agreement, 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.
In announcing the agreement, Foresters President and CEO George Mohacsi said: “This acquisition will further strengthen Foresters market position in the United States and provide Foresters with entry into the US asset management market currently estimated at US$18 trillion.
“In FICC, Foresters will be acquiring a successful investment management and life insurance organization with a significant national distribution network that targets the same demographic market as Foresters. The acquisition of FICC will allow Foresters to offer a broader array of financial products in the U.S., grow our membership, and place us in a stronger position to fulfill our purpose of enriching the lives of our members, their families and their communities,” he said.
The FICC organization includes more than 700 sales professionals operating out of 46 sales offices in 26 states. Through its registered representatives, FICC provides investment management and life insurance services to the middle market. It offers 27 retail mutual funds, as well as 12 funds that serve as subaccounts for its portfolio of variable products.
In commenting on the agreement, Kathryn S. Head, Chairman and CEO of FICC, said: “This transaction represents the culmination of a thorough search for a business partner with a capital structure and financial resources that will position First Investors for significant growth. We found an excellent match in Foresters in terms of operating philosophy, target markets, products and capabilities, and a demonstrated dedication to meeting the needs of its customers.”
On completion of the transaction, FICC will continue to operate as a standalone entity within Foresters U.S. Division. Chris Pinkerton, President of Foresters U.S. Division, will relocate to lead FICC as its President and CEO, in addition to his current responsibilities.
“This acquisition is a win-win proposition for both organizations which further reinforces Foresters strong commitment to its current operations and distribution strategy in the United States, Canada and the U.K.,” he said.
Mr. Pinkerton indicated that, when the transaction is completed, FICC registered representatives who are life licensed will have the opportunity to market Foresters life insurance products, in addition to the current range of FICC financial products.
