Blackstone To Acquire GSO for $620M

(Read more on the debt and equity markets.)

NEW YORK CITY-Locally based global alternative asset manager Blackstone Group LP plans to buy GSO Capital Partners LP for $620 million in cash. Blackstone Holdings units will pay up to $310 million over the next five years contingent on specific earnings targets. In addition, compensatory payments may be paid based on vesting and performance. Blackstone expects this transaction to be nondilutive.

According to Blackstone, the acquisition will enhance its global alternative investment platform in the credit area, will add new lines of business and will create significant synergies and opportunities for the firm. Stephen Schwarzman, chairman and CEO of Blackstone, says in a prepared statement that “the combination of GSO’s businesses with our existing corporate debt operations will produce one of the largest credit platforms in the alternative asset management business,” with more than $21 billion of total assets under management. “Given the current dislocation in the credit markets, this is an ideal time to create a more powerful, diversified platform from which to grow Blackstone’s business,” he adds.