Stifel Financial Corp. (Stifel) anticipates its principal operating subsidiary, Stifel, Nicolaus & Company, Incorporated (Stifel Nicolaus), will acquire 55 branches from UBS Financial Services Inc. (UBS) pursuant to its previously announced agreement to acquire certain UBS Wealth Management Americas branches.
The 55 branch offices that Stifel Nicolaus expects to acquire are located in 24 states throughout the country. These branch offices have approximately USD15 billion in assets under management, including USD213 million in Reg U and Reg T loans and USD1.8 billion in money market and FDIC insured balances.
In 2008, these branches generated estimated total revenue of approximately USD120 million, including approximately USD102 million in compensable Financial Advisor revenue. In connection with this transaction, approximately 320 of the 340 UBS Financial Advisors based at these locations have signed written commitments to join Stifel Nicolaus, representing approximately 97% of the 2008 compensable Financial Advisor revenue within these 55 branches.
The response to the Stifel opportunity has been outstanding and validates Stifels and UBSs rationale for entering into this transaction. We look forward to welcoming the UBS advisors from these branches to the Stifel family, says Ronald J. Kruszewski, chairman and chief executive officer, Stifel.
As previously disclosed, the acquisition is expected to be accretive to Stifels earnings in the first year and is expected to close in two or more closings to be completed during the third quarter of 2009.
The agreement contains certain customary representations, warranties and covenants on the part of Stifel Nicolaus and UBS. The consummation of the transaction is subject to a number of customary closing conditions and the approval of all required governmental and other regulatory entities.
L.D.