Vero Beach-based Bimini Capital Management, Inc. has officially expanded its financial footprint with the strategic acquisition of Tom Johnson Investment Management, LLC. Operating through its wholly owned subsidiary, Bimini Advisors Holdings, LLC, the local asset management firm successfully purchased an 80 percent equity interest in the privately held registered investment adviser. This multi-million-dollar transaction further cements Bimini’s position as a prominent pure asset management entity within the Treasure Coast’s growing corporate financial sector.
The mechanics of the corporate acquisition involve several key financial and structural elements:
- A total purchase price of $12,318,492 was established for the 80 percent stake.
- An initial cash payment of $12 million was completed at closing, with the remaining balance due on or before the one-year anniversary of the deal.
- Bimini secures an option to acquire the remaining 20 percent equity interest after the third anniversary of the transaction.
- The parent company may be legally obligated to purchase the remaining shares prior to that date if the principal seller ceases employment with the firm.
To ensure stability during the transition, the principal seller has entered into a new three-year employment agreement, and all existing staff members have been retained through new employment contracts. Select employees will also be offered equity ownership opportunities in the newly integrated firm to support long-term retention and align with ongoing business objectives.
This strategic step will facilitate staff retention and provide our staff with ongoing incentives for both growth and sustaining the high level of services to our clients over the long term. I personally look forward to working with Bob and the rest of the Bimini team in the years to come to address this ever-changing investment service arena.
The transaction brings substantial managed assets under the umbrella of the Vero Beach corporate headquarters. Tom Johnson Investment Management currently oversees approximately $1.63 billion in assets under management, spanning both fixed income and equity markets, and managing diverse portfolios including individual accounts and sub-advisory agreements. Robert E. Cauley, Chairman and Chief Executive Officer of Bimini, emphasized that the respective assets of both firms will remain under their current management teams without comingling responsibilities. The integration will provide the acquired firm with critical access to Bimini’s extensive capital markets expertise, infrastructure, and banking relationships across Wall Street.
Bimini Capital Management remains a highly significant player in the Florida real estate financial market. The company specializes in residential mortgage-related securities issued by major federal entities, including the Federal National Mortgage Association and the Government National Mortgage Association. Through its Vero Beach operations, Bimini also serves as the external manager for Orchid Island Capital, Inc., a prominent public real estate investment trust listed on the New York Stock Exchange. Westmere Management LLC acted as the exclusive financial advisor to Bimini for this landmark acquisition.
