New York-listed investment bank Stifel Financial Corp. said it will buy Barclays Plc’s US wealth and investment management unit, which is largely made up of the former brokerage arm of Lehman Brothers, Reuters reported.
The deal value was not disclosed, but Barclays said the sale would have minimal financial impact.
Stifel is hoping to bring on board the unit’s 180 advisers, who manage about US$56 billion from offices in 12 cities, the news agency said. The Barclays unit had about 250-300 advisers a year ago.
Depending on the number of advisers who will ultimately join Stifel, the deal could contribute US$200-325 million to revenue, Stifel chief executive Ronald Kruszewski said on a conference call.
Kruszewski has paid relatively low prices to buy companies in the past, but often provides generous packages to retain their employees.
In talking up the complimentary “entrepreneurial” cultures of the firms during the call, Kruszewski appeared to be speaking as much to Barclays brokers as to the financial community.
Stifel will be allowed to exclusively sell certain Barclays-underwritten stock and bond offerings to retail investors, a major business of many of the Barclays brokers.
“At the mid-point of guidance, it appears this transaction could be double digit percent accretive to 2016 EPS,” Wells Fargo Securities analyst Christopher Harris wrote in a note, but he added that this depended on adviser retention.
St. Louis-based Stifel, a once low-key firm specializing in municipal bonds, is now a national presence serving individual investors and middle-market companies.
Kruszewski, who became CEO in 1997, has bought several, mostly troubled, retail brokerage and investment banking firms since 2005.
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