(Updates with company comment in fourth paragraph, analyst’s comment in last.)
Sept. 29 (Bloomberg) -- Sun Life Financial Inc., Canada’s third-largest insurer, agreed to buy the 32 percent of McLean Budden it doesn’t already own for about C$144 million ($139.6 million).
Sun Life will transfer the money-management business to its MFS Investment Management unit, the Toronto-based insurer said today in a statement.
The transaction boosts Sun Life’s assets under management by about 14 percent to C$261 billion for the two companies. McLean Budden manages about C$32 billion. Boston-based MFS, owner of the oldest U.S. mutual fund, will also be able to use McLean Budden’s research and distribution, according to the statement.
“For MFS, it gives them the opportunity to become a major player in the Canadian market overnight and access to all the different channels McLean has,” Sun Life Canada President Kevin Dougherty said today in a telephone interview. “Really, you’ve got this marriage of investment capability, research and distribution that comes out of this deal.”
McLean Budden Chief Executive Officer Roger Beauchemin will continue in his role until the transaction is completed, which is expected to be in November, according to the statement. The company expects to retain most of McLean Budden’s 100 employees, Dougherty said.
The transaction isn’t likely to have any “material impact” on Sun Life results, said John Aiken, an analyst at Barclays Capital in Toronto.
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