Guardian Capital Group acquires majority interest in independent US asset manager Alta Capital Management, LLC
November 20 2017 - 4:29PM
Guardian Capital Group Limited ("Guardian") (TSX:GCG) (TSX:GCG.A)
and Alta Capital Management, LLC ("Alta") today announced that they
have reached an agreement under which Guardian will acquire a
significant majority interest in Alta, an investment management
firm based in Salt Lake City, Utah, USA.
Under the agreement, Guardian will acquire 70%
of Alta. The consideration to be paid on closing is $45
million USD, with additional contingent amounts of up to $10
million USD payable over 4 years from closing. The
transaction is expected to close in early 2018, subject to
regulatory approvals.
The acquisition, which is expected to add over
$3 billion USD to Guardian’s assets under management, is in line
with its strategic plan to add to Guardian’s presence and
distribution network in the United States, further diversifying the
firm’s assets under management by geography and investment
solutions.
"We're very pleased to partner with the Alta
principals to build on our desired commitment to strengthen and
enhance our presence in the United States. Very importantly, our
firms share the same cultural values and we are thrilled to be
adding a firm of this quality to the Guardian Capital group of
companies," said George Mavroudis, Guardian’s President and Chief
Executive Officer. "Serving a common client profile of retail wrap
intermediaries, institutional and private wealth clients, the
combined organization will enjoy greater scale, which is critical
to being competitive in today’s investment industry."
Alta manages US equity and balanced investment
mandates, with approximately $3.2 billion USD in assets under
management as of September 30, 2017. Following the completion of
the transaction, Alta will continue to provide its leading
investment services to US investors. Alta’s owners are
demonstrating their confidence in the combined company by investing
a significant portion of the proceeds of sale in Alta-managed
investment strategies and retaining a significant long-term
ownership interest in Alta.
"Alta Capital is excited to join the Guardian
group of companies," said Michael Tempest, President and Chief
Investment Officer of Alta. "Our respective cultures, goals and
investment philosophies are uniquely aligned. Alta will remain a
leading US investment management firm, now benefiting from the
support of Guardian’s significant financial and operational
resources. This strategic partnership with Guardian ensures that
Alta Capital’s principals will remain employee-owners of the firm
and enables our partners and staff to better serve our clients and
plan for our increasingly promising future."
Moving forward, Alta and Guardian will continue
to share in and be driven by their commitment to excellence in high
conviction, active investing, and to working in partnership with
our clients to help them meet their financial goals.
Cambridge International Partners LLC served as
financial advisor to Alta. Guardian was represented by Pryor
Cashman LLP and Baker & McKenzie LLP and Alta was represented
by Faegre Baker Daniels LLP.
About Alta Capital Management,
LLC Alta Capital Management, LLC is a long-standing
investment manager with an investment philosophy focused on quality
growth. Founded in 1981, Alta offers US equity and balanced
investment mandates to institutional investors and high net worth
private clients. To learn more about Alta, visit
www.altacapital.com.
About Guardian Capital Group
Limited
Guardian Capital Group Limited is a diversified
financial services company founded in 1962. Guardian provides
institutional and private wealth investment management services;
provides financial services to international investors; provides
services to financial advisors in its national mutual fund dealer,
securities dealer, and insurance distribution network; and
maintains and manages a proprietary investment portfolio. Its
Common and Class A shares are listed on the Toronto Stock Exchange.
To learn more about Guardian, visit www.guardiancapital.com.
For further information, please contact:
George Mavroudis(416) 364-8341
This press release contains forward-looking
statements with respect to Guardian Capital Group Limited and its
products and services, including its business operations and
strategy and financial performance and condition. Although
management believes that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties. Actual results may differ materially from
those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially from
expectations include, among other things, general economic and
market factors, including interest rates, business competition,
changes in government regulations or in tax laws, and other factors
discussed in materials filed with applicable securities regulatory
authorities from time to time.
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