The Toronto-headquartered private equity company, Onex Corporation, has entered into a definitive agreement to acquire Gluskin Sheff.
The company will acquire the Toronto-based wealth management firm for CA$445mn (US$331.3mn), paying CA$14.25 (US$10.61mn) per share.
“Gluskin Sheff is one of the largest and most respected independent wealth management firms in Canada, serving high net worth families and institutional investors, with a strong long-term track-record of risk-adjusted investment returns and outstanding client service,” stated Gerry Schwartz, Chairman and CEO of Onex.
“By combining Gluskin Sheff’s public securities investing platforms with Onex’ private equity and private debt platforms the clients of both firms will have greater investment options.”
The deal represents a 28% premium on Gluskin Sheff’s closing share price. Gluskin Sheff aims to broaden its product suite available to clients.
“Onex is the ideal partner for us and our clients. We have a strong cultural fit and a like-minded approach to investing and risk management, which includes financial alignment between our teams and our investors,” commented Jeff Moody, President and CEO of Gluskin Sheff.
“This partnership will provide us with the resources to better serve all of our clients and expand our product offerings with alternative investment strategies.”