Mutual Fund Store sells for $560 million

California-based Financial Engines agreed to pay $560 million for The Mutual Fund Store LLC, a 19-year-old retailer of financial advice to fund investors.

The deal, announced Thursday, involves cash and shares of publicly traded Financial Engines. It also would make Warburg Pincus, the Mutual Fund Store’s principal owner, the largest shareholder of Financial Engines, with 12.5 percent of its stock.

“This acquisition advances our vision to provide independent advisory services to more people and we believe will also fuel significant future growth,” Larry Raffone, chief executive of Financial Engines, said in the announcement.

Kansas City area adviser Adam Bold founded the first Mutual Fund Store in 1996, opening the store in Overland Park. The chain has grown to 129 locations, helping 39,000 households and other clients invest more than $9.8 billion. The group employs 345 nationally.

Bold had sold a controlling stake in the company to Warburg Pincus in 2011. The sale helped fuel growth in the chain. He currently is chairman of the board of The Mutual Fund Store.

Reports surfaced in early October that Warburg Pincus was considering a sale of The Mutual Fund Store. It and members of management that own shares will receive $250 million in cash and 10 million shares of Financial Engines. The shares closed at $34.01, up 61 cents.

Thursday’s announcement said buying The Mutual Fund Store would help Financial Engines expand its advice services to investors in 401(k) plans and provide its users face-to-face sessions through the chain.

The companies expect to complete the sale early next year.

This story was originally published November 5, 2015 at 3:51 PM with the headline "Mutual Fund Store sells for $560 million."