Macquarie Makes Another North American Acquisition

Post by NeilMc on October 27, 2009 · Under Business News, Company News, Mergers & Acquistions, banking · Comment

Australian investment banking major, Macquarie Group has made another Canadian acquisition, agreeing to buy CI Financial Corp’s Blackmont Capital for $95.2 million, adding to its brokerage capability in Canada.

Macquarie has embarked on a number of North American acquisitions over the last year, acquiring US investment banking boutique Fox-Pitt, Kelton in September and Canadian energy boutique Tristone Capital Global in May.

Macquarie said in its statement, that it will acquire Blackmont, which manages C$7.6 billion in assets. The deal includes Blackmont’s 13 offices and 450 employees, including more than 130 investment advisers. The deal will not include CI’s 60 person capital markets unit.

“Macquarie will provide an excellent home with strong support for Blackmont’s retail advisers, and foster the continued growth of their practices,” CI Chief Executive Officer William Holland said in a separate statement.

After the transaction closes in the first quarter, Blackmont will be rechristened Macquarie Private Wealth. Blackmont’s current chief executive Bruce Kagan will continue running the business with Macquarie Executive Director Earl Evans moving to Canada to become president of the unit.

CI Financial is Canada’s third-biggest mutual-fund company; it agreed to buy Blackmont parent Rockwater Capital Corp. for about C$200 million in 2007.

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