Richardson GMP has agreed to acquire the Canadian private-wealth business of Australia’s Macquarie Group, Macquarie Private Wealth Inc. (MPW Canada) for US$127 million.
Upon completion of the deal, Richardson GMP will have C$28 billion in assets under administration.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Under the terms of the Agreement, Richardson GMP has agreed to acquire all of the outstanding shares of MPW Canada for C$132 million, which will be funded by an equity offering on a private placement basis.
The transaction is subject to a number of customary closing conditions, including regulatory approval by the Investment Industry Regulatory Organization of Canada.The deal is expected to be completed during the fourth quarter of 2013.
Following the deal, GMP and RFG will continue to own equal interests in Richardson GMP, with the balance being held by Richardson GMP’s management and investment advisors.
As a part of the deal, each of Richardson Financial Group (RFG), a subsidiary of James Richardson & Sons, and GMP Capital will equally subscribe to a preference share offering by Richardson GMP for total proceeds of C$60 million and an additional C$30 million will be raised by a common share offering to all Richardson GMP shareholders, including GMP and RFG, on a prorate basis.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"This transformational transaction for Richardson GMP reinforces our position as the largest independent wealth management firm in Canada," said Andrew Marsh, President and CEO of Richardson GMP.
"It further establishes Richardson GMP as a firm that can compete with larger institutions, while maintaining a boutique culture. This transaction vaults Richardson GMP into a league of our own," Marsh added.
"As part of Richardson GMP, our advisors can focus on advice and serve the unique needs of their clients, while having the opportunity to be owners in a large, quality, independent firm," said Earl Evans, Head of Macquarie Private Wealth Canada.
