US-listed Legg Mason, one of the largest North American asset management houses, has bought UK-based Martin Currie, the 130-year-old equity specialist.

US-listed Legg Mason, one of the largest North American asset management houses, has bought UK-based Martin Currie, the 130-year-old equity specialist.

The move will bring across Martin Currie’s products in active activity strategies. The firm oversees around $9.8 billion of assets under management, adding to Baltimore, MD-based Legg Mason’s tally of $704 billion as at the end of June.

The transaction is expected to be “slightly accretive” to Legg Mason's earnings in the first year and is scheduled to close during the fourth quarter of 2014, a statement said. Terms of the transaction were not disclosed.  The senior management team at Martin Currie has signed new long term contracts in conjunction with the transaction.

Martin Currie will become a “core independent investment affiliate” of Legg Mason, along with Brandywine Global, ClearBridge Investments, The Permal Group, QS Investors, Royce & Associates and Western Asset Management.

The merger and acquisition deal is an example of the kind of consolidation happening in parts of the asset management and wealth industries as firms either seek to cut costs by focusing on core activity, or boost market reach through economies of scale.

As part of the deal, Legg Mason Australian Equities, with $2.5 billion in AuM and a 14-person team led by Reece Birtles, will become part of Martin Currie, consistent with Legg Mason's strategy of creating fewer and larger investment affiliates, the statement said.

Interestingly, in June St Louis, MO-headquartered Stifel Financial Corp agrees to acquire Legg Mason Investment Counsel & Trust, which manages over $9 million in assets, provides investment advisory and trust services on a discretionary basis to individuals families and institutions in the US. 

“For Legg Mason, this transaction continues to evolve our investment affiliate lineup toward fewer and larger firms that can be better leveraged through our global distribution platform,” said Joseph Sullivan, president and chief executive at Legg Mason, on that deal.

LMAE is an active Australian equities manager, offering clients strategies that include small-cap, property/infrastructure, income and large-cap value. These strategies will continue to be managed by the LMAE investment teams.

Legg Mason was advised by JP Morgan Securities and Dechert; Martin Currie was advised by UBS Investment Bank; and the Institutional Selling Group was advised by Herbert Smith Freehills CI