(December 9 – 9:50 ET) –
Montreal-based BRM Capital Corp.
plans to acquire Quebec-based
planning powerhouse Gestion
Courvie Inc. The firm says it
has signed a letter of intent to
make the acquisition for about
$20 million.
The deal would give BRM another
1,600 advisors in Quebec, Ontario
and New Brunswick. It has about
$3.5 billion under management.
Combined with BRM’s other recent
purchases, the transaction will
give the firm a total of 4,000
advisors and $16 billion under
management.
BRM will become the biggest
firm of its kind in the country,
measured by number of advisors,
although not by assets.
“Our objective of creating the
premier national distribution
organization has now been achieved
with the acquisition of Quebec’s
most pre-eminent firm,” said Paul
Hogan, BRM’s president.
Nineteen per cent of Cartier Capital is owned by Caisse de dépôt et placement du
Québec. Cartier Capital controls BRM. This fall, BRM
came out of nowhere to assemble a
planning powerhouse with its
acquisition of Balanced Planning,
Regal Capital Planners and the
Investment Centre. It later
announced a deal for Atlantic
Canada’s Heritage Financial Services.
BRM already owned Vancouver-based
Great Pacific
Management Inc.
Courvie shareholders will get
$2.5 million in cash and $17.5
million of BRM shares issued at
$1.15. BRM will also advance a
$16-million secured loan to
Courvie to repay its maturing debt
resulting from its recent
acquisition of Groupe Financier
Dubeau Inc.
Courvie reps with assets under
administration of at least $12
million will receive options on
BRM common shares equal to 0.15 %
of their book.
The deal is scheduled to close
on February 28, 2000, subject to
regulatory approval.
-IE Staff
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