Brewin Dolphin Holdings PLC is being purchased by RBC for roughly $6.76 per share, representing a premium of 62% to the asset manager's closing stock price March 30, it said in a regulatory filing.
The firm said it had about $77.5 billion in assets under management as of the end of 2021, and these were impacted by the "geopolitical situation" between Ukraine and Russia. The assets are now worth roughly $72.2 billion.
"This is a transformative acquisition for RBC Wealth Management and cements RBC's position as a market leader across multiple business platforms in the U.K., the Channel Islands and Europe," David Thomas, CEO of RBC Capital Markets Europe and head of wealth management, said in a statement.
"We look forward to welcoming Brewin Dolphin's employees and clients and working together to leverage RBC's global reach and significant capabilities to create new opportunities for the combined business to grow," Thomas added.
Founded in 1762, Brewin Dolphin has more than 30 offices across the United Kingdom and Republic of Ireland and has more than 80,000 private clients, charities and pension funds, according to its website.
As for RBC Wealth Management, the segment said it has affluent and high-net-worth clients and about CA$1.3 trillion (about $1 trillion) of assets under administration, as well as about $801 billion in assets under management.
"Building on the strong organic growth that we have achieved to date, the combined businesses will create an attractive platform for future growth. As part of RBC, we would be able to provide our clients with a broader range of products and services, and expand our distribution channels through leveraging RBC's global presence," Brewin Dolphin CEO Robin Beer said in the statement.
The deal is expected to close by the end of the third quarter of 2022 and is subject to customary closing conditions, including regulatory sign-off and Brewin Dolphin shareholder approval.
A representative for Brewin Dolphin did not immediately respond to a request for further comment, and a spokesperson for RBC declined to comment beyond its public statements.
RBC is represented by Norton Rose Fulbright, and its financial adviser is RBC Capital Markets.
Brewin Dolphin is represented by a Travers Smith LLP team including Adrian West, Neal Watson, James Lansdown, Shireen Shaikh, Mahesh Varia, Claire Prentice, Nigel Seay, Alana Tinkler, Phil Bartram and Samuel Brewer. Its financial advisers are Barclays and Lazard.
--Editing by Philip Shea.
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