TD Securities buys Newcrest Capital
On Tuesday, TD Bank Financial Group made a $224 million offer to buy Newcrest Capital Inc. Newcrest will receive 75 per cent of the purchase price in shares, the rest in cash.
"I am delighted to announce our acquisition of Newcrest, Canada's leading independent Equities and Investment Banking firm," said Charles Baillie, chairman and chief executive of TD Financial Group.
"Through this acquisition, we will capitalize on the strengths of both firms and build an even stronger competitive platform from which to enhance shareholder value."
The deal will strengthen TD Securities' global reach and investment banking operations. According to TD, the addition of Newcrest will be immediately accretive to its cash earnings and will add revenues and expense savings at TD Securities.
Newcrest will enhance TD's abilities in mergers and acquisitions, corporate banking, debt capital markets, derivatives, merchant banking and foreign exchange.
"We believe this deal significantly enhances our ability to deliver outstanding service to our clients. It's an excellent strategic fit that provides TD Securities with a solid base for further expansion in the U.S. and in other global markets," said TD Securities chair and CEO Donald A. Wright.
Newcrest CEO Robert Dorrance said the company is pleased to be joining forces with TD Securities.
"Combining our people, our expertise and our entrepreneurial approach as a boutique dealer with the existing integrated financial, advisory and distribution clout of TD, is bound to be a winning combination."
Dorrance will head up the institutional equities group marketed under the name TD Newcrest.
Founded in 1995, Newcrest Capital is an independent Bay Street firm owned by its employees. Headquartered in Toronto and with offices in Montreal, Calgary and Vancouver, the company of 90 employees specializes in research, financial advice and the sale and trading of equity securities. In June, it was the lead underwriter in C-Mac Industries' issuing of three million new shares.
TD's shares closed unchanged at $44.15 on Tuesday.