RBC Wealth Management (RY) is buying Britain’s Brewin Dolphin Holdings (BRW) in an all-cash deal worth $2.1 billion U.S.
RBC will pay 515 pence a share in cash for Brewin Dolphin, according to a written statement. The price represents a 62% premium to Brewin Dolphin’s last closing share price.
Mergers and acquisitions have been the norm in the wealth management industry over the past few years as the rising cost of regulation, technology and operations push firms to combine with one another.
Brewin Dolphin is one of the United Kingdom’s most prominent wealth managers with 55 billion pounds of assets under management at the end of February.
The combination with RBC will create a wealth manager with 64 billion pounds of assets under management and combined annual revenues of 545 million pounds.
Brewin Dolphin has been hiring staff for it ultra high net worth unit as well as other divisions in its London headquarters and across its regional offices.
Brewin Dolphin’s directors, who own 0.2% of the company’s shares, plan to recommend the deal to shareholders. If approved, the acquisition is expected to be completed in this year’s third quarter.
