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Japan's FPG to buy fund manager in diversification drive-source
March 31, 2014 / 5:32 AM / 4 years ago

Japan's FPG to buy fund manager in diversification drive-source

TOKYO, March 31 (Reuters) - Financial Products Group Co , a Japanese provider of leasing schemes that help companies defer taxes, will acquire a fund management company in the latest move to diversify its operations, a person familiar with the matter said on Monday.

The acquisition of the privately-owned Dai-ichi Asset Management, which has roughly 13 billion yen ($126.3 million) in investment funds under management, will be announced later on Monday, according to the person, who declined to be named as the decision had not been made public.

FPG is expected to pay several hundreds of millions of yen (several million dollars) for Dai-ichi, an investment advisory firm established in 1977, the person said.

FPG and Dai-ichi declined to comment.

FPG specializes in arranging ship, container and aircraft leasing schemes that its clients, mainly small and medium-sized companies, invest in as a tool to defer taxable income. It has grown rapidly, quadrupling revenues between 2009 and 2013, when it booked annual sales of 4 billion yen ($38.9 million) and net income of 1.2 billion yen.

The purchase of Dai-ichi Asset is the latest in a series of moves by CEO Hisanaga Tanimura, who founded the company in 2001 after heading ING’s leasing business in Japan, to diversify FPG’s product offering.

FPG entered the mergers and acquisition advisory and insurance brokerage businesses in 2010, established a joint venture in Europe for arranging operating lease transactions in 2012 and bought a securities brokerage last year.

$1 = 102.9250 Japanese yen Reporting by Nathan Layne and Emi Emoto; Editing by Matt Driskill

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