Scotiabank To Acquire Fellow Canadian Firm

Robbie Lawther

13 February 2018

Canada-based Scotiabank, which has a private banking operation, will acquire Jarislowsky Fraser, a Canadian independent investment firm.

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 firms said in a statement.

The transaction is expected to close in 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.

Stephen Jarislowsky will continue his association with the business that will continue to carry his name and retain investment autonomy. Following this transaction, 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.

Scotiabank expects the transaction to be accretive to earnings in FY 2020.

"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 chief executive 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."

Scotiabank is a financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific.

Jarislowsky Fraser is an independent investment management firms. Founded in 1955 as a research boutique, Jarislowsky Fraser manages the portfolios of pension funds, foundations and endowments, corporations and individuals in Canada, the US and internationally — representing more than $40 billion in assets under management on behalf of institutional and high net worth clients.

In November, this publication reported that Scotiabank had submitted an offer to acquire Banco Bilbao Vizcaya Argentaria’s shares in BBVA Chile.