Under the terms of the deal, B2B Trust will buy AGF Trust for nearly $242m and will also cause AGF Trust to repay subordinated indebtedness owed to and redeem preferred shares held by AGF Management, for a consideration of $173.5m.
The deal has been valued at about $415.5m and will be paid in cash while the transaction is expected to close in August 2012 after obtaining concerned regulatory notifications and approvals, said the US wealth manager.
The bank said that the unified entity will offer the Canadian financial advisory and mortgage brokerage communities with ideal products and services tailored as per their needs.
Throughout the US, AGF Trust provides GICs, term deposits, investment loans and real estate secured loans through some 20,500 financial advisors and 1,050 mortgage brokers.
Expressing views on the business expansion, B2B Trust president and CEO François Desjardins said the acquisition of AGF Trust certainly proves that B2B Trust is, and will always be, 100% committed to meeting the needs of the financial advisory community.
"We have been in a period of growth for the past several years now, and with the inclusion of AGF Trust’s portfolio and services, B2B Trust will be well-positioned to continue developing industry-leading solutions," Desjardins added.
AGF Management chairman and chief executive officer Blake C Goldring said the sale of AGF Trust will enable to redeploy capital to accelerate the firm’s expansion and growth globally while strengthening successful domestic operations.
