GMP Capital Inc. and James Richardson & Sons Ltd. agreed to buy the Canadian private-wealth business of Australia’s Macquarie Group Ltd. for C$132 million ($127 million) to expand its wealth-management partnership.
Richardson GMP Ltd. will have C$28 billion of assets under administration when the deal is completed, which is expected to be in the fourth quarter, the companies said today in an e-mailed statement.
“This transformational transaction for Richardson GMP reinforces our position as the largest independent wealth-management firm in Canada,” Richardson GMP Chief Executive Officer Andrew Marsh said in the statement. “It further establishes Richardson GMP as a firm that can compete with larger institutions, while maintaining a boutique culture.”
Richardson GMP will acquire the outstanding shares of Macquarie Private Wealth Canada in a deal funded by an equity offering to private investors, the Toronto-based firm said.
GMP and a subsidiary of Winnipeg, Manitoba-based James Richardson & Sons will each contribute C$30 million for preferred shares in Richardson GMP, according to the statement. An additional C$30 million will be raised through a share sale to Richardson GMP shareholders, the companies said.
GMP was the financial adviser to Richardson GMP, while Macquarie Capital was the financial adviser for the Canadian wealth unit of the Sydney-based firm.