Sale of Gartmore to Nationwide
Royal Bank of Scotland Group PLC
30 March 2000
THE ROYAL BANK OF SCOTLAND GROUP PLC
SALE OF GARTMORE TO NATIONWIDE
The Royal Bank of Scotland Group plc ('RBS') announces that its subsidiary,
National Westminster Bank Plc ('NatWest') has agreed to sell Gartmore
Investment Management Plc ('Gartmore'), its fund management business, to
Nationwide Mutual Insurance Company, a diversified insurance and financial
services group based in Columbus, Ohio in the USA ('Nationwide'). The deal
values the business at approximately £1,030 million. The agreement is subject
to regulatory approval which is expected to be completed by 30 June 2000. The
total consideration to be received by RBS will be satisfied in cash on
completion. The transaction is not expected to have a material impact on RBS.
Gartmore is an international fund management business based in London with
offices in Scotland, Jersey, Germany, Japan and the USA and was merged with
NatWest's existing fund management operation on acquisition by NatWest in
1996. It is anticipated the combined Gartmore Group will retain a significant
presence in London, utilising existing Gartmore systems and management.
Announcing the sale of Gartmore to Nationwide, Fred Goodwin, Group Chief
Executive of RBS, said:
'RBS recognised in its bid for NatWest that it was not the best owner of
Gartmore. This announcement is, therefore, a natural next step for Gartmore
which will become part of a diversified international financial services
company providing an excellent European base for Nationwide. The complimentary
nature of Gartmore and Nationwide's businesses will provide substantial
strength going forward and a long-term platform for growth and expansion. This
deal is good news for Gartmore employees and clients'.
Commenting on the change of ownership, Paul Myners, Executive Chairman of
Gartmore, said:
'This is a very positive outcome for Gartmore's clients and staff. Our
business is going from strength to strength and the only factor holding us
back has been the recent uncertainty over our ownership. Nationwide is a
highly rated, financially strong parent with the resources and commitment to
build a global asset management business. We are delighted that Gartmore has
been chosen as the engine of this future growth. Nationwide is an ideal new
owner for our business.'
Commenting on the acquisition, Dimon R. McFerson, Nationwide's Chairman and
Chief Executive Officer said:
'One of Nationwide's major goals is to build a global asset management
business. The acquisition of Gartmore gives us immediate scale and global
brand name credibility, backed by excellent management and strong investment
performance. We believe this move has the potential to create substantial
growth opportunities within the Nationwide family of companies. We fully
support Gartmore's management team and its operations and will make no changes
as a consequence of the acquisition'.
30 March 2000
For further information please contact:
Fred Goodwin
Group Chief Executive Tel: 0131-523-2203
Benny Higgins
Deputy Chief Executive, Retail Banking Tel: 0131-523-2415
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