Richardson Wealth agrees to move under iA Financial umbrella for $597M
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Richardson Financial Group Limited is selling its wealth management arm to Quebec-based iA Financial Corp.
Industry titan iA Financial said it’ll purchase RF Capital Group — known as Richardson Wealth — for $597 million. By doing so, it’ll add Richardson Wealth’s more than $40 billion in assets under administration to its umbrella.
Richardson Financial Group announced Monday its intention to vote in favour of the deal. The Winnipeg-based company holds approximately 44 per cent of RF Capital’s shares. Public shareholders hold the latter 56 per cent.
A vote will occur before year end, according to Dave Brown, chief executive of Richardson Capital Limited, Richardson Financial Group’s private equity division. Regulatory approval is also needed.
“This is a very good home for our business,” Brown said.
The Quebec firm will continue to operate Richardson Wealth as a standalone company, allowing teams to run their practices independently, Brown added.
The Richardson family launched its wealth management subsidiary in 2003. Since then, the branch has grown to more than 900 employees and 23 offices across Canada.
According to iA Financial, it has agreed to pay $20 per RF Capital share in cash — 107 per cent more than the closing price of $9.65 on July 25. The transaction includes a $370 million valuation for RF Capital’s fully diluted equity and $227 million in financial obligations, including revolving debt and preferred shares.
The Quebec business approached RF Capital; the latter company was not up for sale, Brown said.
“(iA Financial) brings significant size, and they bring access for our investment advisors to a whole series of products that we wouldn’t have had,” Brown said. “It will be a very good marriage.”
The transaction will bring iA Wealth’s advisory network assets under administration to about $175 billion, the company’s executive vice-president of wealth management said in a news release.
The Richardson family is known for its role in Western Canada’s grain industry. It established James Richardson & Sons in 1857 and has expanded across sectors including food processing, energy and real estate.
gabrielle.piche@winnipegfreepress.com
Gabrielle Piché reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle.
Every piece of reporting Gabrielle produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.
Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber.
Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Gabrielle Piché reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle.
Every piece of reporting Gabrielle produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.
Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber.
Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
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