CIBC to acquire Atlantic Trust Private Wealth Management
TORONTO, April 11, 2013
Advances North American growth strategy for CIBC's Wealth Management business
TORONTO, April 11, 2013 /PRNewswire/ - CIBC (TSX: CM) (NYSE: CM) announced
today that it has entered into a definitive agreement to acquire Atlantic
Trust Private Wealth Management from its parent company, Invesco. Atlantic
Trust manages approximately US$20 billion in assets on behalf of its clients
through 12 metropolitan locations across the United States. The firm provides
integrated wealth management solutions for high-net-worth individuals,
families, foundations and endowments through a team of 235 relationship
management, investment management, wealth strategies and support
"The Atlantic Trust acquisition aligns with our strategy to grow our wealth
management business in North America," said CIBC President and CEO Gerry
"Atlantic Trust provides CIBC with an attractive entry into the U.S. private
wealth market, where high-net-worth personal financial assets are growing 50
per cent faster than those of the average U.S. household," said Victor Dodig,
Senior Executive Vice-President, CIBC and Group Head, Wealth Management.
"This transaction further enhances our private wealth management offering to
high-net-worth clients and is consistent with our acquisition of MFS McLean
Budden in Canada," said Dodig. "It also strengthens our position in the U.S.
market where we have established a presence in asset management through our
separate and strategic investment in American Century."
Atlantic Trust, under the leadership of Jack S. Markwalter, Jr., Chairman and
CEO, was recognized in 2013 by Private Asset Management as the Best Wealth
Manager: Long-Term Performance (3 years)^1 among firms with more than US$5
billion in assets under management and has been recognized by Barron's as one
of the Top 40 Wealth Managers.^2
"CIBC and Atlantic Trust share a commitment to delivering personalized service
and a high level of value to clients," said Martin L. Flanagan, President and
CEO of Invesco Ltd. "CIBC will build on Atlantic Trust's legacy of investment
excellence, strategic wealth planning and extraordinary service to further
enhance the firm's ability to deliver meaningful solutions for high-net-worth
clients across the U.S."
Under the terms of the transaction, CIBC will acquire Atlantic Trust for
US$210 million, in an all-cash transaction that is expected to close, subject
to regulatory approval, in the second half of 2013 and will be accretive to
adjusted earnings per share in fiscal 2014. At closing, the transaction is
expected to reduce CIBC's Basel III Common Equity Tier 1 ratio by
approximately20 basis points on a pro forma basis as at January 31, 2013.
CIBC is a leading Canadian-based global financial institution. Through our
Retail and Business Banking, Wealth Management and Wholesale Banking
businesses, CIBC provides a full range of financial products to individual,
small business, commercial, corporate and institutional clients in Canada and
around the world.
CIBC Wealth Management provides relationship-based advisory services and an
extensive suite of leading investment solutions to meet the needs of personal,
institutional and high-net-worth clients through an extensive distribution
network, that includes CIBC Private Wealth Management, CIBC Wood Gundy and
CIBC Investor's Edge. Our asset management, retail brokerage and private
wealth management businesses combine to create an integrated offer, delivered
through nearly 1,500 advisors across Canada. In addition, CIBC Asset
Management provides global money manager services to institutional and
high-net-worth clients and industry-leading retail investment solutions
through our two mutual fund families - CIBC and Renaissance - and the CIBC
family of managed portfolio solutions.
About Atlantic Trust
Atlantic Trust is one of the United States' leading private wealth management
firms, offering integrated wealth management for high-net-worth individuals,
families, foundations and endowments. The firm considers clients' financial,
trust, estate planning and philanthropic needs in developing customized asset
allocation and investment management solutions. Experienced professionals
deliver a broad range of solutions, including proprietary investment offerings
and a robust multi-manager investment platform of traditional and alternative
managers. For more information, visit www.atlantictrust.com.
Invesco Ltd. is a leading, independent, global investment management firm
dedicated to helping investors worldwide achieve their financial objectives.
By delivering the combined power of our distinctive investment management
capabilities, Invesco provides a wide range of investment strategies and
vehicles to our retail, institutional and high-net-worth clients around the
world. Operating in more than 20 countries, the firm is listed on the New
York Stock Exchange under the symbol IVZ.
A NOTE ABOUT FORWARD-LOOKING STATEMENTS: From time to time, we make written or
oral forward-looking statements within the meaning of certain securities laws,
including in this press release report, in other filings with Canadian
securities regulators or the U.S. Securities and Exchange Commission and in
other communications. These statements include, but are not limited to,
statements about our operations, business lines, financial condition, risk
management, priorities, targets, ongoing objectives, strategies and outlook.
Forward-looking statements are subject to inherent risks and uncertainties
that may be general or specific. A variety of factors, many of which are
beyond our control, could cause actual results to differ materially from the
expectations expressed in any of our forward-looking statements. We do not
undertake to update any forward-looking statement except as required by law.
^1 As named by Private Asset Management (February 2013)
^2 Barron's: ranked by client assets in accounts of $5 million or more as of
June 30, 2012
SOURCE CIBC - Investor Relations
CIBC Investor enquiries: Geoffrey Weiss, (416) 980-5093; Media enquiries:
Kevin Dove, (416) 980-8835. Invesco/Atlantic Trust media inquiries: Bill
Hensel, (404) 479-2886
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