Gluskin Sheff to buy Blair Franklin AM

Gluskin Sheff + Associates has entered into an agreement to acquire all of the outstanding shares of Blair Franklin Asset Management Holdings.

Blair Franklin specializes in offering fixed-income solutions, such as its Global Credit Fund and Global Rates Fund. It offers exposure to international markets.

Gluskin Sheff has agreed to pay $15 million in cash, plus 1,900,000 common shares of Blair Franklin to the sellers, subject to certain customary adjustments. Out of those shares, 712,500 will be subject to a minimum one-year holding period. The remaining 1,187,500 will be held in escrow for two years and will thus be subject to claw back, pursuant to a purchase price adjustment based on the assets under management at the end of this period.

The acquisition is expected to be accretive to Gluskin Sheff’s earnings per share in the first year, excluding amortization and any non-recurring items arising from the transaction.

Peter Zaltz, CIO and managing director of Blair Franklin, plans to take on the role of executive vice-president & head of fixed income at Gluskin Sheff. He’ll also be appointed to the company’s management committee.

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