Raymond James Financial will acquire boutique firm – Financo – through a definitive purchase agreement.

The transaction, which is expected to close in Raymond James’ fiscal second quarter, will facilitate the firm’s expansion plans in response to growing demand for investment banking expertise amongst consumer and retail companies.

A consumer-focused investment bank, Financo operates across several consumer and retail specialities and is highly regarded for its capabilities in sectors such as beauty and personal care, e-commerce and active living.

The integration of the two firms subsequently positions Raymond James as a global market-leader in consumer and retail investment banking.

Coinciding with a widespread shift in business models and shopping behaviour within the consumer and retail segment, Jim Bunn – president of Raymond James – referred to the acquisition as a “tremendous growth opportunity”.

Bunn continued: “This acquisition significantly expands our Consumer group and deepens our private-equity relationships further assuring Raymond James is well-positioned to serve clients growing demand for banking expertise during a critical period of transition and change in the sector.”

CEO of Financo, John Berg, is expected to lead the combined consumer and retail practice, which will cover sub-sectors such as apparel, personal care, fitness brands, footwear, home furnishing and speciality retail.

Berg boasts almost three decades of experience as an investment banker and private-equity investor in the consumer and retail space. According to Berg, the two companies share common values and “a client-first culture”.

“I’ve long admired Raymond James and the growth of its investment banking franchise, and we are thrilled to be able to offer its global network, strong capabilities and resources to our clients.”

Paul Reilley, CEO of Raymond James, expanded on the significance of the two firms’ complementary nature: “With our strong capital position and the growing demand for effective investment banking expertise among consumer and retail companies, this deal allows us to strategically grow our capabilities with an industry-leading team that has a similar culture and desire to deliver meaningful outcomes for clients.”

The completion of the transaction is subject to regulatory conditions.