Richardson GMP Limited to acquire Macquarie Private Wealth Inc.

September 9, 2013 - Press release

Richardson GMP Limited (Richardson GMP) today announced that it has reached an agreement (the Agreement) to acquire Macquarie Group’s Canadian retail business, Macquarie Private Wealth Inc. (MPW Canada).  Upon completion of the transaction, Richardson GMP will have $28 billion in assets under administration.

“This transformational transaction for Richardson GMP reinforces our position as the largest independent wealth management firm in Canada,” said Andrew Marsh, President and CEO of Richardson GMP.  “It further establishes Richardson GMP as a firm that can compete with larger institutions, while maintaining a boutique culture.  This transaction vaults Richardson GMP into a league of our own.”

“As part of Richardson GMP, our advisors can focus on advice and serve the unique needs of their clients, while having the opportunity to be owners in a large, quality, independent firm,” said Earl Evans, Head of Macquarie Private Wealth Canada.

“The wealth management industry in Canada has been dynamic over the last few years,” continued Mr. Marsh. “By combining with the professionals of Macquarie Private Wealth Canada, Richardson GMP firmly enhances its reputation in the Canadian Wealth Management Industry.”

Under the terms of the Agreement, Richardson GMP has agreed to acquire all of the outstanding shares of MPW Canada for a purchase price of approximately $132 million, which will be funded by an equity offering on a private placement basis.  Each of Richardson Financial Group (RFG), a subsidiary of James Richardson & Sons, Limited, and GMP Capital Inc. (GMP) will equally subscribe to a preference share offering by Richardson GMP for total proceeds of $60 million. An additional $30 million will be raised by a common share offering to all Richardson GMP shareholders, including GMP and RFG, on a pro rata basis.  Upon completion of the offering, GMP and RFG will continue to own equal interests in Richardson GMP, with the balance being held by Richardson GMP’s management and investment advisors.

Completion of the transaction is subject to a number of customary closing conditions, including regulatory approval by the Investment Industry Regulatory Organization of Canada.  The transaction is expected to be completed during the fourth quarter of 2013.
GMP Securities L.P. is acting as financial advisor to Richardson GMP.  Macquarie Capital is acting as financial advisor to MPW Canada.

About Richardson GMP
As Canada's largest independent wealth management firm with offices across Canada, Richardson GMP provides exclusive and innovative investment solutions to successful families and entrepreneurs. Since 2010, Richardson GMP has earned top ranking in the Investment Executive Brokerage Report Card for products and services dedicated to high net worth investors. Richardson GMP Limited is a member of the Canadian Investor Protection Fund. www.RichardsonGMP.com


About GMP Capital Inc.

GMP is a leading independent diversified financial services firm headquartered in Toronto, Canada, providing a wide range of financial products and services to a global client base that includes corporate clients, institutional investors and high-net-worth individuals in two integrated reporting segments. The Capital Markets segment provides investment banking, including advisory and underwriting services, institutional sales and trading and research through offices located in Toronto, Montreal, Calgary, New York, Miami, Dallas, London, Perth and Sydney.  The Capital Markets segment conducts its business through the following operating entities: GMP Securities L.P., GMP Securities, LLC, Griffiths McBurney Corp., GMP Securities Europe LLP and GMP Securities Australia Pty Limited. Wealth Management consists of GMP's non-controlling ownership interest in Richardson GMP Limited and the investment management and alternative investment products provided by CQI Capital Management L.P.  Richardson GMP Limited is a full-service independent firm focused on providing exclusive and comprehensive wealth management and investment services delivered by an experienced team of investment professionals. GMP is listed on the Toronto Stock Exchange under the symbol “GMP”. For further information, please visit our corporate website at www.gmpcapital.com.


About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie's main business focus is making returns by providing a diversified range of services to clients. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries and employs more than 13,600 people. Assets under management total approximately $362 billion at March 31, 2013.  Upon completion of this transaction, Macquarie will continue to operate diverse business in Canada including institutional equities, corporate advisory, funds management, asset finance, and fixed income, currencies and commodities. The sale of Macquarie Private Wealth Canada will have no effect on Macquarie’s other businesses in Canada which continue to operate from Toronto, Calgary, Montreal and Vancouver.  For more information, visit www.macquarie.com.

Forward-looking information
This press release contains “forward-looking information” as defined under applicable Canadian securities laws.   This information includes, but is not limited to, statements concerning our 2013 objectives, our strategies to achieve those objectives, as well as statements made with respect to management's beliefs, plans, estimates, projections and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, as well as statements regarding Richardson GMP’s acquisition of MPW Canada. Forward-looking information generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans” or “continue”, or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management's current beliefs and is based on information currently available to management.

Forward-looking information is not a guarantee of future performance and is subject to numerous risks and uncertainties, including those described in this press release. Richardson GMP’s acquisition of MPW Canada is subject to various risks and uncertainties, including that the conditions to closing will not be satisfied or waived or that the transactions will otherwise not be consummated.  GMP's primary business activities are both competitive and subject to various risks. These risks include market, credit, liquidity, operational and legal and regulatory risks and other risk factors including, without limitation: variation in the market value of securities, volatility and liquidity of equity and fixed income trading markets, volume of new financings and mergers and acquisitions (M&A), dependence on key personnel and sustainability of fees. Other factors, such as general economic conditions, including interest rate and exchange rate fluctuations, may also have an effect on GMP's results of operations. Many of these risks and uncertainties can affect GMP's actual results and could cause its actual results to differ materially from those expressed or implied in any forward-looking information disclosed by management or on its behalf.  For a description of additional risks that could cause our actual results to materially differ from our current expectations, see “Risk Management” in the 2012 Annual MD&A and the Second Quarter 2013 MD&A and “Risk Factors” in GMP's 2013 Annual Information Form dated March 13, 2013. These risks and uncertainties are not the only ones facing GMP together with its consolidated operations controlled by it and its predecessors (GMP Group).  Additional risks and uncertainties not currently known to us or that we currently consider immaterial may also impair the operations of the GMP Group.  Material assumptions or factors underlying the forward-looking information contained in this press release are set out in the “Business Environment and Market Outlook” section of the Second Quarter 2013 MD&A and include, without limitation: continued economic recovery in the U.S., slow growth and weak demand for commodities in emerging markets including China, subdued Canadian capital markets activity. Although forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information. Certain statements included in this press release may be considered a “financial outlook” for purposes of applicable Canadian securities laws, and as such the financial outlook may not be appropriate for purposes other than this press release. The forward-looking information contained in this press release is made as of the date of this press release, and should not be relied upon as representing GMP's views as of any date subsequent to the date of this press release. Except as required by applicable law, management and GMP's Board of Directors undertake no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.



Investor contact:

GMP Capital Inc.

Rocco Colella
Director, Investor Relations
145 King Street West, Suite 300

Toronto, Ontario M5H 1J8

Tel.: 416.941.0894  Fax.: 416.943.6175
rcolella@gmpcapital.com or investorrelations@gmpcapital.com



Media contact:

NATIONAL Public Relations

Jennifer Lee
Tel.: 416.848.1383
jlee@national.ca


Download PDF

Previous News & Announcements
View items by year:

2015

2014

2013

2012

2011

2010

  • Andrew Marsh, CEO, discusses the acquisition of Macquarie Private Wealth Canada

    Sep 11, 2013

    Andrew Marsh appeared on BNN to discuss the acquisition of Macquarie Private Wealth Canada. Providing Canadians with independent wealth management with a transparent approach is a key differentiator for Richardson GMP...
    read more
  • Richardson GMP Limited to acquire Macquarie Private Wealth Inc.

    Sep 09, 2013

    Richardson GMP Limited (Richardson GMP) today announced that it has reached an agreement (the Agreement) to acquire Macquarie Group’s Canadian retail business, Macquarie Private Wealth Inc. (MPW Canada). Upon completion of the transaction, Richardson GMP will have $28 billion in assets under administration...
    read more
  • Gareth Watson, VP, Investment Management Group featured on BNN

    Aug 13, 2013

    Gareth Watson, VP, Investment Management Group featured on BNN discussing the potential privatization of Blackberry, and an examination of Canadian Telcos, precious metals and oil...
    read more
  • 8th annual Barney Bentall & The Grand Cariboo Opry fundraising concert presented by Richardson GMP & Potluck Café Society

    Jun 10, 2013

    Richardson GMP and Potluck Café Society, in association with Paul Mercs Concerts, are proud to present Barney Bentall & The Grand Cariboo Opry at The Vogue Theatre on Saturday, November 23, 2013. A treasured tradition among Vancouver’s local community, this fundraiser and one‐of‐a‐kind variety show brings concertgoers together to support the Potluck Café Society and their work in Vancouver’s Downtown Eastside...
    read more
  • Gareth Watson, VP, Investment Management Group shares his market outlook with BNN

    May 31, 2013

    Gareth Watson, Vice President, Investment Management Group at Richardson GMP was a guest on BNN's Business Day on May 29, where he shared his views on the current market and outlook for what's to come...
    read more
  • New Strategic Relationship Formed with Dynasty Financial Partners

    May 02, 2013

    Andrew Marsh, CEO, discusses Richardson GMP’s reasons for its strategic relationship with U.S. Dynasty Financial Partners on BNN.
    read more
  • Richardson GMP expands private wealth management across the border

    May 01, 2013

    Richardson GMP today announced that it has formed a strategic relationship with Dynasty Financial Partners, a premier network of independent Investment Advisors. The reciprocal relationship will enable Richardson GMP to offer a broad range of wealth management products and services to Dynasty clients in Canada and allow Dynasty to provide services for Richardson GMP clients in the U.S...
    read more
  • Richardson GMP earns top ranking in supporting high net worth clients

    Apr 29, 2013

    For the fourth consecutive year, Richardson GMP Limited received top rating in the Investment Executive (IE) 2013 Brokerage Report Card, scoring a 9.1 average of all categories measured. The highly regarded annual IE Brokerage Report Card asks Advisors from 13 investment firms to evaluate their firms...
    read more
  • Gareth Watson, VP, Investment Management & Research discusses Canadian earnings & his market outlook with BNN

    Apr 29, 2013

    Gareth Watson, Vice President, Investment Management & Research at Richardson GMP spoke with BNN on April 23rd about Canadian earnings updates and his market outlook. Expectations for the year remain set for moderate gains…
    read more
  • Joey Mack talks to BNN about what the Bank of Canada interest rate hold and forecast means for bonds

    Apr 18, 2013

    Joey Mack, Director, Fixed Income for GMP Securities LP spoke with BNN about the Bank of Canada’s recent announcement that it is keeping interest rates at 1% and lowering its forecast. Joey shares insight into what this means for bond rates and where investors may be able to find value in fixed income products…
    read more
  • Announcement of Richardson GMP shareholder liquidity amendments

    Jan 31, 2013

    GMP Capital Inc. (GMP) (TSX: GMP), Richardson Financial Group Limited (RFGL), a subsidiary of James Richardson & Sons, Limited, and Richardson GMP Limited today jointly announced that they have reached an agreement in principle regarding changes to the Richardson GMP Limited (Richardson GMP) shareholder liquidity event.
    read more