Guggenheim Partners, a global diversified financial services firm, has agreed to acquire LBBW Securities, the US broker/dealer, and a wholly-owned subsidiary of Landesbank Baden-Wurttemberg (LBBW), a Germany-based bank.
LBBW Securities was founded in 2007 as a wholly-owned subsidiary of LBBW, specializing in repurchase agreements, securities lending and other financing transactions. It is recognized for its dealings in US government bonds, US agency debentures and mortgage related securities, with a growing presence in both US corporate and equity securities.
LBBW will maintain its branch in New York and continue to support German companies and their subsidiaries in the US and Canada; the branch will also remain active in US commercial real estate finance.
The product range of LBBW’s New York branch includes loans and interest rate and currency derivatives. LBBW’s Letter of Comfort, which was issued in favor of LBBW Securities, will terminate upon the closing of the transaction with Guggenheim, and LBBW Securities will be renamed Guggenheim Liquidity Services, following the close of the transaction.
Paul Friedman, chief operating officer of Guggenheim Securities, the investment banking and capital markets unit of Guggenheim Partners, said: “In LBBW Securities we saw a great opportunity to acquire a firm that complements our current business and broadens our reach. Our team has been working closely with LBBW to ensure a seamless transition, and we look forward to fully integrating and growing this business line.”
Robert Boyd, head of LBBW Securities, said: “Guggenheim is known for its client focus and deep expertise, making this a great fit for LBBW Securities. Joining Guggenheim is an exciting development for our organization and our clients.”
However, the transaction is subject to FINRA review, and expected to close at the beginning of April 2010. Terms of the deal were not disclosed.