McGladrey & Pullen to Buy Back RSM McGladrey
Bloomington-based accounting firm McGladrey & Pullen, LLP will buy back its former subsidiary, RSM McGladrey, for approximately $610 million.
RSM is currently a wholly-owned subsidiary of Kansas City-based H&R Block, Inc., which acquired RSM from McGladrey & Pullen in 1999.
H&R on Tuesday announced that it will finance approximately $65 million of the transaction value and transfer nearly all of RSM's assets back to McGladrey & Pullen, which will absorb all liabilities, including contingent payments and lease obligations. The sale is expected to close by the end of this year.
In a separate announcement from McGladrey & Pullen, Managing Partner Joe Adams said the sale is in the best interests of the two firms' clients, employees, and partners. “We see great opportunities for success and growth for McGladrey & Pullen as a firm reunited in a traditional partnership structure,” Adams said in a statement. “Our relationship with H&R Block has served us very well, but we both agree that it is time to move on.”
While RSM and McGladrey & Pullen have operated as separate legal entities since the acquisition by H&R, the two firms have worked under a close partnership through which McGladrey & Pullen provided clients with public accounting services, and RSM McGladrey provided non-public accounting services, including most tax and consulting services.
Last summer, the two firms announced they'd market themselves under a single brand and logo-McGladrey-and launched a nationwide campaign. The combined firms have more than 80 offices across the country.
McGladrey & Pullen is owned by its individual partners and offers audit and consulting services. It is one of the state's five-largest accounting firms based on the number of licensed Minnesota CPA-certificate holders, which totaled 278 as of June 2, 2010.