Amvescap plc reports that it has signed a definitive agreement to acquire WL Ross & Co. LLC.

New York-based WL Ross & Co. is one of the investment industry’s leading financial restructuring groups and currently manages more than US$3.5 billion in assets for institutional investors in the United States, Europe and Asia.

The initial purchase price for the business is US$100 million, to be paid upon closing of the transaction; in addition, the agreement calls for five annual earn-out cash payments, each capped at US$55 million, based on the size and number of future fund launches. The first annual earn-out payment has a set minimum value of US$30 million. The total purchase price may be up to US$375 million.

Amvescap says that the transaction is expected to be immediately accretive to earnings. It will finance the transaction using existing cash and borrowings under its credit facility.

“The addition of WL Ross & Co. significantly expands the range of sophisticated investments for Amvescap’s global clients,” said Martin Flanagan, president and chief executive officer of Amvescap. “Wilbur Ross is the recognized leader in financial restructuring, and we are very excited that such a distinguished investor and his experienced team are joining Amvescap. With his leadership of the company’s direct private equity business, Amvescap will be uniquely positioned to deliver alternative investment strategies that provide innovative and enduring investment solutions for our clients.”

WL Ross was formed in April, 2000, by Wilbur Ross as an independent organization dedicated to private investments and fund management for institutional investors and family offices across the globe. The company has sponsored alternative investments including private equity funds, co-investment vehicles, and hedge funds in the steel, textile, coal, automotive and financial services industries in the U.S., UK, France, China, Japan and Korea.

“Amvescap is an investment industry leader, and with its established culture of strong, separate investment groups, is an excellent strategic fit for me and my experienced team,” said Ross. “Gaining access to Amvescap’s broad range of capabilities from investment expertise to global presence will help expand the industries and geographies in which we invest, and the firm’s strong marketing team will broaden our access to capital. I and the rest of our team are enthusiastic about the long-term prospects of this new relationship.”

Upon completion of the acquisition, expected in the fourth quarter of 2006, Amvescap’s direct private equity business, Invesco Private Capital, will be combined into WL Ross & Co. and managed by Ross.

De Guardiola Advisors and Goldman Sachs acted as financial advisors to Amvescap in this transaction.