Gluskin Sheff + Associates has signed a deal to purchase entire outstanding shares of Blair Franklin Asset Management Holdings, the parent company of Blair Franklin Asset Management.
Canada-based Blair Franklin was set up in 2003. Operating as a boutique asset management firm, Blair Franklin specializes in fixed income and has nearly $625 million in assets under management.
Under the terms of the transaction, Gluskin Sheff + Associates will reimburse $15,000,000 in cash as well as 1,900,000 common shares of the company to the sellers, subject to certain customary adjustments.
At closing, nearly 712,500 of the common shares will be issued to the sellers, which will be subject to a minimum one-year holding period, while the rest of 1,187,500 common shares will be held in escrow for two years.
Pending receipt of regulatory approvals as well as approval of the Toronto Stock Exchange, the transaction is expected to conclude during the third quarter of 2014.
Upon completion of the takeover and subject to regulatory approval, Peter Zaltz, Blair Franklin’s managing director & chief investment officer, will assume the post of executive vice-president & head of fixed income and will be appointed to Gluskin Sheff’s Management Committee.
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Additionally, Thomas MacMillan, chair of Blair Franklin, will be named as a directorto the Gluskin Sheff + Associates board.
Gluskin Sheff president & CEO Jeremy Freedman said, "Adding the talents and portfolio offerings of the Blair Franklin team to our own outstanding team enhances our global capabilities and broadens the ways in which we can earn strong risk-adjusted returns for our clients in the fixed income markets."