Onex has agreed to acquire 100% shares of Toronto, Canada-based wealth management firm Gluskin Sheff + Associates (Gluskin Sheff) for C$445m ($331.5m).
Image: Onex to acquire Gluskin Sheff for $331.5m. Photo: Courtesy of IndypendenZ/FreeDigitalPhotos.net.
Onex stated that the purchase price is 28% premium to the closing share price of Gluskin Sheff as on 22 March and a 37% premium to the volume weighted average price (VWAP).
Gluskin Sheff, which was founded in 1984, serves high net worth private clients and institutional investors. It delivers strong risk-adjusted returns together with the best level of personalized client service.
The deal expands the product suite available to Gluskin Sheff’s clients. The company’s present leadership will continue to operate as an independent brand.
Gluskin Sheff president and CEO Jeff Moody said: “Onex is the ideal partner for us and our clients. We have a strong cultural fit and a like-minded approach to investing and risk management, which includes financial alignment between our teams and our investors. This partnership will provide us with the resources to better serve all of our clients and expand our product offerings with alternative investment strategies.”
The deal is subject to a court-approved plan of arrangement along with Gluskin Sheff’s shareholder approval and customary closing conditions. It is expected to be closed in the first half of this year.
The board of Gluskin Sheff has stated that the consideration is fair from financial point of view and has recommended shareholders to vote in favor of the transaction.
Onex chairman and CEO Gerry Schwartz said: “Gluskin Sheff is one of the largest and most respected independent wealth management firms in Canada, serving high net worth families and institutional investors, with a strong long-term track-record of risk-adjusted investment returns and outstanding client service.
“By combining Gluskin Sheff’s public securities investing platforms with Onex’ private equity and private debt platforms the clients of both firms will have greater investment options.”
Some senior management members of Gluskin Sheff have agreed to roll-over a significant portion of their shares in the company, into Onex subordinate voting shares. It is estimated to be 7% of the total outstanding shares.
Established in 1984, Onex is a private equity fund based in Toronto, Canada. The company has more than $31bn in assets under management.
The company invests through its Onex Partners and ONCAP private equity funds. It has offices in Toronto, New York, New Jersey and London.