CWB Financial Group is to acquire iA Investment Counsel Inc (iAIC), a wholly owned iA subsidiary. iAIC is a provider of financial planning and wealth management services targeting high-net-worth Canadian families under the brand names TE Wealth (TE) and Leon Frazer & Associates (Leon Frazer). TE is also one of the largest and most reputable providers of investment management and financial education services to Indigenous communities, with offerings provided under the TE Wealth Indigenous Services brand.
With more than USD6 billion in assets under management and advisement, and offices located in Toronto, Calgary, Montreal and Vancouver, this transaction will bring CWB’s total wealth assets under management, administration and advisement to more than $8 billion.
“This exciting transaction is a transformative step forward in wealth management for CWB and is fully aligned to our strategic direction,” says Chris Fowler, CWB’s President and CEO. “We are committed to accelerating the growth of our boutique full-service offering for successful business families. TE and Leon Frazer bring recognised talent and scale to our key markets and we believe these teams will be an excellent fit with our people-first, relationship-focused culture. CWB’s clients will benefit from broader and deeper investment counselling and planning capabilities, with an extended geographic footprint supporting our continued growth of strong client relationships across the country. CWB’s investors will benefit from diversifying our total revenue and scaling our wealth management business.”
Matt Evans, President and CEO, CWB Wealth Management, adds: “We are very excited to welcome TE Wealth and Leon Frazer to the CWB family. Both are deeply established businesses with highly respected investment counsellors who maintain trusted client relationships, in many cases going back several generations. TE is a clear leader in complex financial planning with focused capabilities in corporate financial education and executive financial counselling. These capabilities complement CWB’s unique market position to serve successful entrepreneurs and business families. Leon Frazer brings a rich heritage in dividend-focused investing, and adds valuable diversification to our established in-house asset management capabilities. We are excited to bring these compelling new dimensions to our clients as we continue to align CWB’s boutique wealth offering with our proactive full-service business and personal banking experience.”
“It is incredibly important to our leadership that clients of TE Wealth and Leon Frazer continue to receive superior service through this transition and in future, which is exactly what we believe they can expect from CWB Wealth Management. The values and service model of CWB’s respected private client team are an excellent fit for both companies,” says Carl Mustos, Executive Vice President of iA Wealth. “For iA Wealth, this divestiture enables us to focus exclusively on investing in our core strength of serving the needs of high-net-worth Canadians through our network of independently owned investment advisory practices.”
The transaction is expected to close in CWB’s fiscal third quarter 2020, subject to regulatory approvals and closing conditions. The purchase price payable will be satisfied through cash consideration with the transaction expected to reduce CWB’s regulatory capital ratios by approximately 30 basis points at closing. The transaction will support CWB’s adjusted cash earnings per share modestly at first with further accretion beginning in fiscal 2022.
TD Securities acted as exclusive financial advisor to CWB on the transaction.