’s branches. As was rumored round these parts this morning. Full press release from Stifel Financial:
Stifel Financial Corp. (NYSE: SF) announced today that its principal operating subsidiary, Stifel, Nicolaus & Company, Incorporated, has entered into an exclusive agreement with UBS Financial Services Inc. (“UBS”) to acquire up to 55 branches from the UBS Wealth Management Americas branch network.
The 55 offices are located in 24 states throughout the country, and employ an aggregate of approximately 320 Financial Advisors, who have approximately $15 billion in assets under management, including $215 million in Reg U and Reg T loans and $1.7 billion in money market and FDIC insured balances. In 2008, these branches generated estimated total revenue of approximately $116 million, including approximately $100 million in compensable Financial Advisor revenue. The transaction is structured as an asset purchase for cash at a premium over certain balance sheet items, subject to adjustment. The payments to UBS include:
* An upfront cash payment of up to approximately $27 million based on the actual number of branches and Financial Advisors acquired by Stifel Nicolaus;
* Annual earn-out payments for the two-year period following the closing of the transaction principally based on the performance of the UBS Financial Advisors who become Stifel Nicolaus employees; and
* Aggregate payments of up to approximately $19 million for net fixed assets and employee forgivable loans.
The above payments are variable based upon the number of Financial Advisors and branches acquired by Stifel Nicolaus. In addition to the above payments, Stifel Nicolaus has agreed to acquire other client related assets, and assume certain liabilities, associated with the branches acquired.
The number of employees, branches and assets to be acquired by Stifel is expected to be determined in approximately 35 to 45 business days. The acquisition is expected to be accretive to Stifel’s earnings in the first year and is expected to close in one or more closings to be completed during the third quarter of 2009.
Stifel Chairman and Chief Executive Officer, Ronald J. Kruszewski, commented, “The addition of these UBS branches represents a unique strategic fit. The addition of this talented group of professionals furthers our efforts to meet our goal of expanding across the country and further build upon Stifel’s recent growth achieved through our successful acquisitions and integrations of the Legg Mason Capital Markets Group in 2005, Ryan Beck in 2007 and Butler Wick last year.”
Jamie Price, Head of UBS Wealth Management Advisor Group, Americas, added, “This transaction is beneficial for both firms. It positions UBS to continue to gain market share in strategic markets which are key to our long-term growth. We also believe these branches will be able to integrate smoothly onto Stifel’s platform and the Financial Advisors would continue to grow and assist their clients in meeting their financial goals.”
The asset purchase agreement contains certain customary representations, warranties, and covenants on the part of Stifel Nicolaus and UBS. The consummation of the transaction is subject to a number of customary closing conditions and the approval of all required governmental and other regulatory entities.
Buh-bye UBS, it was nice knowin ya…
The United States of America
U’ve Been Sold!
These branches are tiny and mean relatively nothing. Bravo to UBS.
I guess they never got the U B Sucks memo. Unfortunately it looks like the suckers will still be casting their dark shadow over the I95 corridor in Stamford, CT.
proper Swiss banks dont deal with septics
Boutiques are the new killing it. Suck it bulgies
Any place to find a list of branches getting a name change?
Isn’t Joe Battapaglia, the pereenial bear and gold bug, the guy who goes on Kudlow from that firm?
This is surreal. Isn’t Stifel the weakest of the weak broker-dealers? I wonder if UBS is carrying any paper on the deal.
Boy, all those brokers that just jumped ship from ML, MS, and SB to UBS and now they get the cracker-jack team from Stifel.
This is rich.
Hey #9, take a look at the performance of SF stock from Jan 1, 2007 until today and then compare it to GS, MS, LEH, BSC, MER, BAC, C, UBS and let me know just how “cracker-jack” they are
I don’t think there are many who joined UBS from MS/SB, MER or WB who are going to be caught up in this. I do know of a team from WB who came to UBS in the summer and they are not pleased.
SF has had some nice performance but what do they really bring to the table…I’m not sure but I do understand why UBS dumped the smaller offices.
I don’t think there are many who joined UBS from MS/SB, MER or WB who are going to be caught up in this. I do know of a team from WB who came to UBS in the summer and they are not pleased that they are caught up in the sale.
Most that came to UBS went to bigger offices.
me @ 11 and 12 = FAIL
U B Sorry
8 – do you mean the bloated head and former permabull under republiKKKans now permabear under democrats baitpawhaverthefucklia? Yes, that is him. He is a fucking idiot and an embarassment. He is costing his clients major dollars dumbfuck that he is.
Watch out Wenatchee…Your time has come….na na na, na na na, hey hey goodbye!
so when does the rest of Wealth Management get sold??? This is just the first piece, take in enough $ to keep the ship afloat till a buyer is found for the rest of the Wealth Management crap at UBS right?
so when does the rest of Wealth Management get sold??? This is just the first piece, take in enough $ to keep the ship afloat till a buyer is found for the rest of the Wealth Management crap at UBS right?
Cheer up u bs’rs, it could have been worse. Can you say Oppenheimer?
55 offices, 320 brokers with a total of $116M in revenue?
Are these UBS offices in strip malls next to the dry cleaner?
@8
Joe Batt originally came from Gruntal, ’nuff said.
didnt stevie cohen come from gruntal
@22- yes.