Canada's Gluskin Sheff to buy Blair Franklin Asset Management

Mon Jun 2, 2014 3:11pm EDT
 
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TORONTO, June 2 (Reuters) - Wealth manager Gluskin Sheff + Associates Inc said on Monday it will buy Blair Franklin, a boutique money manager with C$625 million ($573.68 million) in client assets, boosting its fixed-income business at a time of strong demand for the asset class.

Gluskin Sheff, a 30-year-old Canadian wealth manager which focuses on high net worth and institutional clients, said it will pay C$15 million in cash plus 1.9 million common shares for Blair Franklin Asset Management.

Based on the closing price of C$29.87 on Friday, the deal is valued at C$71.8 million.

Shares in Toronto-based Gluskin Sheff were up 5.0 percent at C$31.35 in mid-afternoon trade on the Toronto Stock Exchange, below the year-high C$34.05 hit in April but nearly double the year-ago price of C$16.30.

Founded in 2003, Blair Franklin operates two funds, the Blair Franklin Global Credit Fund and the Blair Franklin Global Rates Fund.

Peter Zaltz, Blair Franklin's chief investment officer, will take on the role of head of fixed income at Gluskin Sheff, the companies said in a statement.

"Adding the talents and portfolio offerings of the Blair Franklin team to our own outstanding team enhances our global capabilities and broadens the ways in which we can earn strong risk-adjusted returns for our clients in the fixed income markets," Gluskin Sheff Chief Executive Jeremy Freedman said in a statement.

($1 = 1.0895 Canadian Dollars) (Reporting by Andrea Hopkins)