AMG



First Asset Management



April 19, 2005 09:24 ET

First Asset Management Agrees to Be Acquired by Affiliated Managers Group; New Strategic Partner Expands Opportunities for First Asset Affiliates


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AMG

NYSE SYMBOL: AMG

AND FIRST ASSET MANAGEMENT

APRIL 19, 2005 - 09:24 ET

First Asset Management Agrees to Be Acquired by
Affiliated Managers Group; New Strategic Partner
Expands Opportunities for First Asset Affiliates

TORONTO--(CCNMatthews - Apr 19, 2005) -

First Asset Management Inc. ("First Asset"), one of Canada's largest
independent asset management firms, with more than $29 billion in assets
under management, today announced an agreement with Affiliated Managers
Group, Inc. (NYSE: AMG), under which AMG has agreed to acquire 100%
ownership of First Asset, including First Asset's interests in Foyston,
Gordon & Payne Inc.; Beutel, Goodman & Company Ltd.; Montrusco Bolton
Investments Inc.; Deans Knight Capital Management Ltd.; Triax Capital
Corporation; Covington Capital Corporation; and First Asset Advisory
Services Inc.

AMG is an asset management company with equity investments in a diverse
group of mid-sized investment management firms which collectively manage
over US$130 billion in assets across a broad range of investment styles
and distribution channels. AMG's partnership approach provides for
individual members of each Affiliate's management team to retain equity
in their firm as a powerful incentive for growth through an investment
structure which preserves the unique culture and operating environment
that has led to their success. AMG has a strong track record of
partnering with leading mid-sized investment firms in the U.S. and U.K.,
having invested in more than 20 mid-sized firms since its founding in
1993.

"This is a very exciting day for First Asset," said Michael B.
Simonetta, President and Chief Executive Officer of First Asset. "AMG is
a strong company whose strategy and operating philosophy are parallel to
ours, with a partnership approach that preserves and enhances its
Affiliates' incentives for continued growth through retained direct
equity ownership, while maintaining each firm's distinct culture and
operating autonomy. AMG has an outstanding reputation as an experienced
and supportive partner to its Affiliates, and, together with First Asset
and our Affiliates, has significant opportunities for continued growth
in the Canadian marketplace."

"We are pleased to announce our agreement to acquire First Asset, and
our prospective partnerships with First Asset's Affiliates, which are an
impressive group of asset management firms and among the most highly
regarded independent mid-sized investment businesses in Canada," said
Sean M. Healey, President and Chief Executive Officer of AMG. "Not only
has First Asset assembled a group of excellent investment firms and a
broad and diverse set of products and clients, but more importantly,
their Affiliates' management teams have demonstrated an interest in
choosing a partner that provides each firm's management with operating
autonomy and significant retained equity and similar incentives in their
businesses, which is consistent with AMG's philosophy of investing in
mid-sized investment firms. Having come to know their principals over
the course of the past year, we are confident that each firm will be a
strong addition to AMG's Affiliate group, and we look forward to working
with First Asset and our new partners, where appropriate, to help them
enhance the growth of their businesses."

First Asset has agreed to be acquired by AMG for a total of
approximately $306 million (including repayment of existing First Asset
indebtedness), with approximately 90% of the consideration in cash, and
the remainder in AMG common stock. Mr. Simonetta will serve as President
of the Canadian office of AMG, responsible for the growth and
development of the business. First Asset's Affiliates will continue to
operate as distinct entities upon the closing of the transaction, and
will continue to manage their businesses and service their clients as
they have in the past. The transaction is expected to close early in the
third quarter, pending completion of transaction-related closing
conditions including regulatory approvals.

About First Asset Management Inc.

First Asset is one of Canada's largest independent asset management
firms with over $29 billion in assets under management. Its affiliated
businesses include Foyston, Gordon & Payne; Beutel, Goodman; Montrusco
Bolton; Deans Knight; Triax Capital; Covington Capital; and First Asset
Advisory Services. Its clients include pension funds, foundations and
endowments, high net worth private clients, as well as investment and
financial advisory firms. Further information about First Asset is
available on the Internet at www.firstasset.com.

About Affiliated Managers Group, Inc.

Founded in 1993, AMG is a U.S.-based asset management company with
equity investments in a diverse group of mid-sized investment management
firms. AMG is listed on the New York Stock Exchange and has an equity
market capitalization of over US$2 billion. AMG's strategy is to
generate growth through the internal growth of its existing Affiliates,
as well as through investments in new Affiliates. AMG's innovative
transaction structure provides for individual members of each
Affiliate's management team to retain or receive significant direct
equity ownership in their firm while maintaining operating autonomy. In
addition, where appropriate, AMG provides centralized assistance to its
Affiliates in strategic matters, marketing, distribution, product
development and operations. Further information about AMG is available
on the Internet at www.amg.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    First Asset Management Inc.
    Michael B. Simonetta, 416-640-5565
    email: msimonetta@firstasset.com
    or
    Affiliated Managers Group, Inc.
    Darrell W. Crate, 617-747-3300
    email: darrell.crate@amg.com