BB&T Corp., the parent company for Richmond, Va.-based full service brokerage firm Scott & Stringfellow, this week announced it will acquire the brokerage and investment banking firm Bergen Capital Inc.
When the proposed merger is completed, Bergen Capital will become part of Scott & Stringfellow, but will continue to operate under its own name. The deal, which is subject to regulatory approval, is expected to close in the first quarter next year. Terms of the transaction were not disclosed.
"We're excited about adding a growing, high-quality firm known as much for its emphasis on client relationships as it is for putting together quality investment strategies in the bond market," said Walter Robertson, president and chief executive officer of Scott & Stringfellow. "Bergen Capital will extend our reach into two strategic growth markets."
If completed, the deal would give Scott & Stringfellow a new presence in the Northeast. The Hasbrouck Heights, N.J.-based Bergen Capital, which was founded in 1998, specializes in underwriting and trading fixed-income securities and caters to both retail and institutional investors.
The firm is composed of three main businesses: private client services, investment banking, and debt trading. It has 75 employees, and its two main offices are in New Jersey and Georgia. Bergen is active in the secondary markets for municipal, corporate, and government debt, and it maintains a municipal investment banking practice that this year ranks 36th in New Jersey and 27th in Georgia for co-managed muni deals, according to Thomson Financial.
"The deal hopefully will give us the capital and the ability to expand and grow in this area and expand our client base, and it gives Scott & Stringfellow a stronger presence in New Jersey and Georgia, two areas they wanted to be," said Charles Gilbride, president of Bergen Capital, who will continue to hold a senior position in the merged company.
Scott & Stringfellow and its capital markets division, BB&T Capital Markets, have 57 offices in nine states. Through its 900 employees, it offers wealth management services, investment banking, primary research, and fixed-income and equity sales and trading services.
The firm has 250 financial advisers in 41 locations throughout Virginia, North Carolina, South Carolina, and West Virginia. BB&T Capital ranks 10th in Virginia and 42nd nationwide for senior managed deals this year, according to Thomson. The firm has existed since 1893, and is a member of the New York Stock Exchange. In 1999, it was acquired by BB&T Corp. (c) 2005 The Bond Buyer and SourceMedia, Inc. All rights reserved. http://www.bondbuyer.com http://www.sourcemedia.com
