Fiera Capital announces closing of acquisitions of Bel Air Investment Advisors
and Wilkinson O'Grady & Co
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
MONTREAL, Oct. 31, 2013 /CNW Telbec/ - October 31, 2013 - Fiera Capital
Corporation ("Fiera" or the "Firm") (TSX: FSZ) announced today that it has
completed its previously announced acquisitions of Los Angeles, California
based Bel Air Investment Advisors LLC as well as its affiliate Bel Air
Securities LLC (collectively "Bel Air"), and New York based investment manager
Wilkinson O'Grady & Co., Inc. ("Wilkinson O'Grady") (the "Transactions").
These acquisitions add approximately C$8.5 billion in assets under management
to Fiera's private wealth sector.
The aggregate purchase price in connection with the Transactions amounted to
approximately US$156.25 million. The purchase price for the Bel Air
acquisition was approximately US$125 million, subject to post-closing
adjustments, including US$115 million in cash. The remaining US$10 million
will be paid to the selling partners by issuing new Fiera Class A subordinate
voting shares ("Class A Shares") over a 32-month period. US$15million of the
cash consideration is being held in escrow for a period of three years. The
purchase price for the Wilkinson O'Grady acquisition was approximately
US$31.25 million consisting of US$29.7 million in cash and US$1.6 million
worth of new Class A Shares issued to certain selling shareholders.
The purchase price was financed using the net proceeds from the Firm's
previously announced C$105 million private placements of subscription
receipts, completed partly through a syndicate of underwriters co-led by
National Bank Financial Inc. and GMP Securities L.P. and partly with Natcan
Investment Management Inc., a wholly-owned subsidiary of National Bank of
Canada, as well as from amended credit facilities. Under Fiera's amended
credit facilities, the revolving facility was increased from C$20 million to
C$75 million and the term loan was decreased to C$175 million from C$180
million. Approximately C$50 million was drawn by Fiera under its revolving
facility to finance the Transactions.
Each subscription receipt will be exchanged, without additional payment, for
one Class A Share. Holders of subscription receipts do not need to take any
action in order to receive the Class A Shares to which they are entitled. As
the subscription receipts were sold on a private placement basis, the Class A
Shares are subject to a statutory resale restriction until January 19, 2014.
The securities referred to in this press release have not been and will not be
registered under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable state securities laws.
This news release shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of any securities in the United
States or any jurisdiction in which such offer, solicitation or sale would be
About Fiera Capital Corporation
Fiera Capital Corporation is a leading publicly traded, independent investment
firm. The Firm is one of only a handful of full service, multi-product
investment firms in Canada, offering clients a proven top tier track record in
Canadian and foreign equity and fixed income management as well as depth and
expertise in asset allocation and non-traditional investments.
Additional information relating to the Firm, including the Firm's annual
information form, is on SEDAR at www.sedar.com.
About Bel Air Investment Advisors
Established in 1997, Bel Air Investment Advisors LLC is a prominent
independent wealth management advisory firm, providing financial advisory, and
asset and investment management services to exclusively high net worth
individuals, families, trusts and foundations with US$20 million or more in
investable assets. Headquartered in Los Angeles, California, Bel Air services
over 275 families across the United States and oversees approximately C$7.7
billion in assets, including private foundation relationships. For more
information, visit www.belair-llc.com.
About Wilkinson O'Grady & Co., Inc.
Founded in 1972, Wilkinson O'Grady & Co., Inc. actively manages separate
global, domestic and international portfolios for wealthy
individuals, families, trusts, endowments, foundations, corporations
and other clients. Wilkinson O'Grady & Co. is a global investor that builds
client portfolios around enduring investment themes — the economic and
social forces that drive long-term change. Wilkinson O'Grady & Co.
endeavors to grow client capital by investing in the
marketable securities of businesses it believes have attractive financial
characteristics, strong management teams and significant market opportunities.
This document may contain certain forward-looking statements. These statements
relate to future events or future performance, and reflect management's
expectations or beliefs regarding future events, including business and
economic conditions and Fiera's growth, results of operations, performance and
business prospects and opportunities. Such forward-looking statements reflect
management's current beliefs and are based on information currently available
to management. In some cases, forward-looking statements can be identified by
terminology such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "estimate", "predict", "potential", "continue", "target", "intend"
or the negative of these terms, or other comparable terminology.
By their very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and a number of factors could cause
actual events or results to differ materially from the results discussed in
the forward-looking statements. In evaluating these statements, readers should
specifically consider various factors that may cause actual results to differ
materially from any forward-looking statement.
These factors include, but are not limited to, market and general economic
conditions, the nature of the financial services industry, and the risks and
uncertainties detailed from time to time in Fiera 's interim and annual
consolidated financial statements, and its Annual Report and Annual
Information Form filed on www.sedar.com.
These forward-looking statements are made as of the date of this document, and
Fiera assumes no obligation to update or revise them to reflect new events or
SOURCE Fiera Capital Corporation
Mélanie Tardif, CPA, CMA Director, Corporate Communications and Investor
Relations Fiera Capital Corporation 514-954-6456 email@example.com
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