Legg Mason to acquire Brandywine via swap

Maryland Watch

December 10, 1997

Legg Mason Inc. signed a definitive agreement to acquire money manager Brandywine Asset Management Inc. in a stock swap valued at about $135 million, the Baltimore-based company said yesterday.

Legg will issue 2.6 million shares of common stock, or about 10 percent of its current outstanding shares, plus 200,000 stock options.

Raymond A. "Chip" Mason, Legg's chairman and chief executive, said the Wilmington, Del.-based Brandywine fits well with its "value" style of investing. It also adds billions of dollars in assets to the company's managed portfolio.

"This dramatically increases our equity assets under management," Mason said.

Brandywine is privately held and has $7 billion in assets under management. About 90 percent of its assets are managed for institutional clients and 10 percent for wealthy individuals.

The deal is expected to close in late January.

Brandywine will become a wholly owned subsidiary of Legg, but it will be managed by its current senior executives. Brandywine's founder and president, W. Anthony Hitschler, will remain with the company.

Pub Date: 12/10/97

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