RBC Looks to Complete Purchase of Ferris Baker Watts

RBC Wealth Management will soon complete its purchase of mid-Atlantic investment bank and brokerage firm Ferris, Baker Watts Inc. - a deal that was originally announced in February - expanding the Canadian bank's reach in the municipal market.

The acquisition will give RBC a strong presence in wealth management throughout the mid-Atlantic region. It will also build upon the parent bank's current expansion into the U.S. public finance space.

In 2007, RBC Capital Markets, the investment banking unit, was the 10th most-active senior manager in the municipal market, underwriting $14.3 billion through 536 deals, according to Thomson Reuters.

"The acquisition of FBW demonstrates RBC's continued commitment to building our wealth management presence in the U.S. and takes us one step closer to our goal of becoming a nationally recognized investment, advisory, and wealth management firm," said John Taft, chief executive officer of RBC Wealth Management, in a statement announcing the deal.

FBW is a closely-held company owned by the more than 900 employees who work at 42 branch offices and 15 other offices in 10 states. The largest full-service investment banking firm headquartered in Washington, D.C., according to its Web site, FBW is well known for selling Maryland bonds to retail investors. It once displayed bonds for sale on a billboard alongside a Maryland highway.

The purchase price and further details of the sale were not disclosed, though press reports at the time the sale was announced, on Feb. 14, suggested RBC had paid about $200 a share.

FBW was the 43d-ranked senior manager last year, underwriting $884.5 million in par volume through 61 mostly negotiated transactions, according to data from Thomson. The firm was one of the senior underwriters on the $900 million West Virginia Tobacco Settlement Finance Authority that sold last year. FBW has almost $19 billion in assets under management.

The acquisition of a firm with a municipal presence is just the latest for RBC, one of Canada's largest banks by assets and market capitalization.

In 2007, it acquired top Ohio broker-dealer Seasongood & Mayer LLC and New Jersey-based JB Hanauer & Co. In 2006, RBC snapped up American Guaranty & Trust of Wilmington, Del., as well as Atlanta-based Flag Financial Corp., New York-based Carlin Financial Group, and Denver-based Daniels & Co.

The deal is slated to close this summer, subject to approval by both U.S. and Canadian regulators.

 

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