(Read more on the debt and equitymarkets.)
NEW YORK CITY-Locally based global alternative asset managerBlackstone Group LP plans to buy GSO Capital Partners LP for $620million in cash. Blackstone Holdings units will pay up to $310million over the next five years contingent on specific earningstargets. In addition, compensatory payments may be paid based onvesting and performance. Blackstone expects this transaction to benondilutive.
According to Blackstone, the acquisition will enhance its globalalternative investment platform in the credit area, will add newlines of business and will create significant synergies andopportunities for the firm. Stephen Schwarzman, chairman and CEO ofBlackstone, says in a prepared statement that "the combination ofGSO's businesses with our existing corporate debt operations willproduce one of the largest credit platforms in the alternativeasset management business," with more than $21 billion of totalassets under management. "Given the current dislocation in thecredit markets, this is an ideal time to create a more powerful,diversified platform from which to grow Blackstone's business," headds.
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