GMP Capital Inc. (TSX: GMP) and James Richardson & Sons, Ltd. (JRSL) have successfully completed the transactions necessary to join their respective wealth management businesses, the companies said Thursday.

GMP Private Client L.P. and Richardson Partners Financial Limited (RPFL) have been combined to create Richardson GMP Ltd.

The combined wealth management firm manages more than $11.5 billion in client assets and has 114 investment advisory teams located in 17 cities across Canada.

The deal to form Richardson GMP was previously announced on July 23, 2009.

Concurrently with this closing, Richardson Financial Group Ltd., a subsidiary of JRSL, and certain RPFL investment advisors and members of RPFL’s management team collectively subscribed for $87 million in GMP common shares.

“GMP now has access to a much larger wealth management franchise and the expanded relationships and opportunities that come with increased scale,” says Kevin Sullivan, CEO of GMP Capital Inc.

“We look forward to working closely with the Richardson family as our strategic partner in Richardson GMP and as a significant shareholder and sponsor of GMP,” he says.

Currently, GMP and the Richardson Financial Group Ltd. each own a 35% ownership interest in Richardson GMP, with the remaining 30% ownership interest held by Richardson GMP’s investment advisory and management teams. James Werry, former CEO and president of GMP Private Client L.P., assumes the role of Richardson GMP’s CEO, and Sue Dabarno, former president and CEO of RPFL, has been appointed executive chairman of Richardson GMP.

Hartley T. Richardson, president and CEO of JRSL and H. Sanford Riley, president and CEO of Richardson Financial Group Ltd., have been appointed to the board of directors of GMP.

IE