Santander to Buy US Fixed-Income Broker Dealer Amherst Pierpont in $600 Million Deal
July 15 2021 - 12:49PM
Dow Jones News
By Mauro Orru
Banco Santander SA has struck an agreement through its U.S.
holding company Santander Holdings USA to acquire independent
fixed-income broker dealer Amherst Pierpont Securities.
The Spanish bank said Thursday that Amherst Pierpont would join
its corporate and investment banking global business line,
following the acquisition of its parent holding company Pierpont
Capital Holdings LLC for a consideration of about $600 million.
Amherst Pierpont has recorded an average return on equity of
about 15% since 2016. In 2020, its return on equity stood at 28%,
with an estimated return on risk weighted assets of 3%.
It has around 230 employees and more than 1,300 active
institutional clients.
"This acquisition is consistent with our customer focused
strategy and our commitment to profitable growth in the USA. It
complements our product offerings and capabilities, allowing us to
strengthen our relationships with our corporate and institutional
clients," Santander Executive Chairwoman Ana Botin said.
Santander expects to close the transaction by the end of the
first quarter of 2022.
The deal should add around 1% to group earnings per share and
generate a return on invested capital of about 11% by the third
year, shaving off 9 basis points from group capital at closing,
Santander said.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
July 15, 2021 12:41 ET (16:41 GMT)
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