Agreement enhances Scotiabank's Institutional
investment capabilities across Canada
Transaction creates the third-largest active asset manager in
Canada
TORONTO, Feb. 12, 2018 /CNW/ - Scotiabank and
Jarislowsky Fraser today announced that Scotiabank will acquire
Jarislowsky Fraser, one of Canada's leading independent investment firms
with more than $40 billion in assets
under management on behalf of institutional and high net worth
clients. The combination of Jarislowsky Fraser and Scotiabank's
asset management business creates the third‐largest Canadian active
asset manager with $166 billion in
assets under management (as of December 31,
2017). The transaction is expected to close in fiscal Q3
2018, subject to regulatory approvals.
The purchase price payable at closing of approximately
$950 million will be satisfied
primarily by the issuance of Scotiabank common shares. An
earn-out of up to $56 million in
additional Scotiabank common shares may be paid based on achieving
growth targets.
The transaction has received unanimous support of all partners
of Jarislowsky Fraser, and of Stephen A.
Jarislowsky, who will continue his association with the
business that will continue to carry his name and retain investment
autonomy. Following this transaction, the partners' interests will
continue to be strongly aligned with the interests of Jarislowsky
Fraser's clients; substantially all of the partners have agreed to
invest half of their proceeds from the closing of the transaction
into Jarislowsky Fraser's investment strategies.
The Jarislowsky Fraser management team will continue to lead its
existing business and its head office will remain in Montreal, Quebec.
"Jarislowsky Fraser is an iconic Canadian brand with a
disciplined investment process, a team‐oriented approach with a
proven high‐calibre investment team, and a long history of
delivering outstanding investment capabilities to institutional
investors and high net worth families," said Brian Porter, President and CEO at Scotiabank.
"This transaction aligns with our strategic commitment to diversify
our global wealth management business by building out a platform of
rigorous, process‐driven investment capabilities for institutional
investors across our footprint in Canada and the Pacific Alliance. The
acquisition also enhances Scotiabank's ability to serve the
banking, estate, and trust needs of high net worth families who are
the clients of Jarislowsky Fraser."
"Over the course of our 62 year history, Jarislowsky Fraser has
built a reputation for delivering excellent investment results for
our clients," said Stephen A.
Jarislowsky, Founder of Jarislowsky Fraser. "With its
existing distribution footprint, Scotiabank is uniquely positioned
to preserve the legacy of our firm and enable the next generation
of growth. We look forward to continuing to serve our clients and
to enhancing our investment capabilities to meet their needs today
and in the future."
Scotiabank intends to offset the dilutive impact of the issuance
of common shares to satisfy the purchase price by repurchasing a
similar amount of common shares under its normal course issuer bid,
over the 12 to 18 month period following closing. The
completion of any such repurchases would be subject to regulatory
approvals, the suitability of prevailing market prices and prudent
capital management. Following the completion of these
repurchases, Scotiabank expects the transaction to be accretive to
earnings in FY 2020.
Scotiabank's Global Banking and Markets Division acted as
exclusive financial advisor to Scotiabank on the transaction.
About Scotiabank
Scotiabank is Canada's international bank and a leading
financial services provider in North
America, Latin America, the
Caribbean and Central America, and Asia-Pacific. We are dedicated to helping our
24 million customers become better off through a broad range of
advice, products and services, including personal and commercial
banking, wealth management and private banking, corporate and
investment banking, and capital markets. With a team of more than
88,000 employees and assets of over $915
billion (as at October 31,
2017), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges
(NYSE: BNS). For more information, please visit www.scotiabank.com
and follow us on Twitter @Scotiabank.
About Jarislowsky, Fraser Limited
Jarislowsky, Fraser
Limited is one of Canada's leading
independent investment management firms. Founded in 1955 as a
research boutique, Jarislowsky Fraser today manages the portfolios
of pension funds, foundations and endowments, corporations and
individuals in Canada,
the United States and
internationally — representing more than $40
billion in assets under management. Its investment
philosophy and low-risk approach are built on a foundation of
time-tested conservative principles and more than 60 years of
fundamental research. Jarislowsky Fraser's history and culture
are rooted in investment stewardship, which is expressed through an
adherence to high-quality investing, a long-term investment horizon
and the advancement of good governance and sustainable
investing. For more information, please visit
www.jflglobal.com.
SOURCE Scotiabank