Canada’s CIBC to buy Atlantic Trust Private Wealth Management
Tom Burroughes Group Editor, Family Wealth Report
CIBC (or Canadian Imperial Bank of Commerce) has pushed into the US private wealth market by entering an agreement to acquire Atlantic Trust Private Wealth Management from its parent company, Invesco, for $210 million, the bank has announced.
The Toronto-listed bank said the move will boost its wealth management capabilities and is consistent with other acquisitions, such as its purchase last August of the private banking assets of MFS McLean Budden in Canada. It also highlighted its purchase in 2011 of a 41 per cent equity interest in US asset manager American Century Investments, for $848-million.
CIBC will acquire Atlantic Trust for $210 million (US dollars), in an all-cash transaction that is expected to close, subject to regulatory approval, in the second half of 2013 and will be accretive to adjusted earnings per share in fiscal 2014. At closing, the transaction is expected to reduce CIBC’s Basel III Common Equity Tier 1 ratio by approximately 20 basis points on a pro forma basis as at January 31, 2013.
Atlantic Trust manages about $20 billion in assets for clients through 12 metropolitan locations across the US. The firm serves high net worth individuals, families, foundations and endowments through a team of 235 relationship management, investment management, wealth strategies and support professionals.
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