Canadian Imperial Bank of Commerce, the country’s fifth-largest bank, agreed to buy the private- wealth business of MFS McLean Budden to bolster its wealth- management operations.
MFS McLean Budden, a unit of Sun Life Financial Inc. (SLF), manages about C$1.4 billion ($1.4 billion) in assets for high- net-worth individuals and families, endowments and foundations. Financial terms weren’t disclosed as Toronto-based CIBC announced the deal today in a statement.
CIBC Chief Executive Officer Gerald McCaughey has said the bank was searching for wealth management acquisitions as a way to reinvest capital. Last year it purchased American Century Investments for $848 million.
The purchase “is in line with management’s strategy of seeking attractive growth opportunities in the capital-efficient wealth management space,” said Michael Goldberg, an analyst at Desjardins Securities in Toronto.
The transaction is expected to close in the fourth quarter, according to the statement.
CIBC shares rose 0.6 percent to C$73.65 at 11:37 a.m. in trading on the Toronto Stock Exchange.
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