KKR to acquire KKR Financial in all-stock deal

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(AP) - Global investment firm Kohlberg Kravis Roberts & Co. L.P. says it plans to acquire KKR Financial Holdings LLC in an all-stock agreement that values the specialty finance company at $2.6 billion.

KKR Financial, based in San Francisco, is already managed by the New York-based private equity investment firm but operates as a separate company.

Under the agreement announced Monday, KKR Financial shareholders will receive 0.51 common units of KKR & Co. for each common share they hold. This represents a stock payment of $12.79 per share to KKR Financial shareholder. That's a 35 percent premium to its own closing price Monday.

The deal expands KKR & Co.'s assets and is expected to immediately boost its earnings. The companies expect the deal to close in the first half of 2014.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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