Strong Financial Seeks a Buyer
Strong Financial Corp. on Wednesday confirmed that it’s for sale, a day after founder and Chief Executive Richard Strong resigned amid federal and state investigations of his trading activities.
In a brief statement, the company said it had hired brokerage Goldman Sachs to look for possible deals.
“A sale of the company is among the strategic alternatives we are considering,” spokeswoman Stephanie Truog said. “Nothing may come of this exploration. But it’s an opportune time to be looking at all the options, and that’s just what we’re doing.”
She declined to discuss the asking price for the company or say whether any prospective buyers had stepped forward.
News that the company was for sale had been somewhat expected, given Strong’s resignation and his announcement Tuesday that he would give up voting control of the company in which he has an 85% stake.
Federal and state authorities are investigating Strong and his company for alleged improper fund trading.
The company now manages $42.7 billion in assets.
Paul Herbert, an analyst at fund tracker Morningstar Inc. in Chicago, predicted the sale price for Strong could total $1 billion, although a buyer would have some bargaining power because of the scandal, he said.
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