Canada-based Toronto-Dominion Bank (TD) has agreed to acquire Greystone Capital Management (GCMI), parent firm of institutional asset manager Greystone Managed Investments, for C$792m ($603.20m).
The purchase price is made up of C$730m of enterprise value, seed capital of around C$105m along with certain other net adjustments.
As per the terms of the deal, GCMI shareholders will get 30% of the net purchase price in the form of TD common shares with the remaining balance to be paid in cash.
By adding Greystone’s portfolio, TD said that its wealth management business, TD Asset Management (TDAM), will become the largest money manager in Canada.
Greystone CEO and chief investment officer Robert Vanderhooft said: “Joining forces with TD will add tremendous value to Greystone clients interested in expanding and diversifying their investment portfolios.
“TD’s core values, combined with its progressive employee culture and long-term investment philosophies are in perfect alignment with Greystone.”
Greystone, which is based in Regina, Saskatchewan, offers multi-asset class investment capabilities to its clients. The Canadian institutional asset manager integrates traditional and alternative investment solutions, while specializing in real estate investments.
With the acquisition, TD will add Greystone’s $36bn in assets under management to its existing $357bn under management.
TD Bank Group wealth management and TD insurance group head Leo Salom said: “At TD Wealth, we continually look for opportunities to strategically grow our North American business to offer clients a superior wealth management experience.
“Greystone’s leadership in alternative investments is a perfect complement to TDAM’s traditional investment products. Their robust suite of proven alternative and traditional investment solutions, combined with the scope and strength of TD’s existing offerings, will provide clients with compelling solutions to enhance their current portfolios.”
After the closing of the deal, Greystone will operate and serve clients as TD Greystone Asset Management while retaining its Regina headquarters.
Based on the receipt of regulatory approvals and meeting of other customary closing conditions, the acquisition is anticipated to be completed in the second half of 2018.