Atlantic Trust manages approximately US$20 billion in assets on behalf of its clients through 12 metropolitan locations across the United States. The firm provides integrated wealth management solutions for high-net-worth individuals, families, foundations and endowments through a team of 235 relationship management, investment management, wealth strategies and support professionals.
'The Atlantic Trust acquisition aligns with our strategy to grow our wealth management business in North America', said CIBC President and CEO Gerry McCaughey.
'Atlantic Trust provides CIBC with an attractive entry into the U.S. private wealth market, where high-net-worth personal financial assets are growing 50 per cent faster than those of the average U.S. household," said Victor Dodig, Senior Executive Vice-President, CIBC and Group Head, Wealth Management.
'This transaction further enhances our private wealth management offering to high-net-worth clients and is consistent with our acquisition of MFS McLean Budden in Canada', said Dodig. 'It also strengthens our position in the U.S. market where we have established a presence in asset management through our separate and strategic investment in American Century'.
Atlantic Trust, under the leadership of Jack S. Markwalter, Jr., Chairman and CEO, was recognized in 2013 by Private Asset Management as the Best Wealth Manager: Long-Term Performance (3 years)1 among firms with more than US$5 billion in assets under management and has been recognized by Barron's as one of the Top 40 Wealth Managers.
'CIBC and Atlantic Trust share a commitment to delivering personalized service and a high level of value to clients', said Martin L. Flanagan, President and CEO of Invesco Ltd. 'CIBC will build on Atlantic Trust's legacy of investment excellence, strategic wealth planning and extraordinary service to further enhance the firm's ability to deliver meaningful solutions for high-net-worth clients across the U.S'.
Under the terms of the transaction, CIBC will acquire Atlantic Trust for US$210 million, in an all-cash transaction that is expected to close, subject to regulatory approval, in the second half of 2013 and will be accretive to adjusted earnings per share in fiscal 2014.
At closing, the transaction is expected to reduce CIBC's Basel III Common Equity Tier 1 ratio by approximately 20 basis points on a pro forma basis as at January 31, 2013.