Houlihan Lokey, Inc. (HLI) announced that it has acquired Baylor Klein, a boutique advisory company, to accelerate the growth of its corporate finance business in Europe.
The financial terms of the deal have been kept under wraps. Shares of the global investment bank and financial services company have gained 48% over the past year. (See HLI stock charts on TipRanks)
Baylor Klein, founded in 2008, provides M&A and strategic advisory services to the Beauty, Personal Care, and Household sectors globally.
The addition of Baylor Klein will enhance the reach of the company’s Consumer Food & Retail (CFR) group and also bring additional competency to its Household, Beauty, and Personal Care (HBPC) space.
Scott Adelson, Co-President and Co-Head of Corporate Finance at HLI commented, “As with all our acquisitions, the Baylor Klein team embodies and shares with Houlihan Lokey a number of important cultural traits, including a steadfast dedication to its clients and a track record of success that confirms genuinely deep and superior sector expertise.”
He further added, “They are true leaders in their field, and we think they will be a fantastic addition to our outstanding CFR team.”
Before Baylor Klein, HLI had acquired five other companies over the past six years, increasing its team of bankers in Europe from 80 in 2014 to over 260 at present.
UBS analyst Brennan Hawken recently increased the price target on HLI from $72 to $80 (1% downside potential) and reiterated a Hold rating on the stock.
Consensus among analysts is a Moderate Sell based on 1 Hold and 1 Sell. The average Houlihan Lokey price target of $74 implies 8.4% downside potential to current levels.
Houlihan Lokey scores a 5 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations.