Montreal-based Fiera Capital (
TSX:T.FSZ,
Stock Forum) today announced two acquisitions of respected U.S. firms – one a wealth management firm, and one a global asset manager – for $156m.
Part of a U.S. expansion plan, the move picked up Bel Air Investment Advisors out of Los Angeles, California, and Wilkinson O’Grady, out of New York City.
The pick-ups bring an additional C$8.5 billion in assets under management to Fiera.
According to a
statement, “Total consideration for the Transactions is approximately US$156.25 million” and “Fiera expects to generate low double digit accretion to its 2014 adjusted net earnings per share from the Transactions.”
"We are very proud to join forces with these two experienced and highly credible teams. We see tremendous growth potential in the U.S. private wealth market and these transactions fit perfectly with our plan to create value by becoming a leading North American investment management firm within the next five years," said Jean-Guy Desjardins, Chairman and Chief Executive Officer of Fiera in a press release. "Increasing our assets under management by C$8.5 billion to approximately C$74 billion, these acquisitions enhance our North American footprint and add depth to our investment and servicing teams."
Founded in 1997, the Bel Air acquisition brings access to the ‘ultra high net worth’ segment of the private equity market, according to Desjardins, while the forty-year-old Wilkinson O’Grady brand manages $2.2 billion for 500 client accounts.
It is expected that National Bank of Canada will exercise its right of anti-dilution in Fiera and purchase C$31.36 million of subscription receipts, while maintaining its 35% ownership in the firm.