Industrial Alliance buying Sarbit

Industrial Alliance has expanded its asset management operations in English Canada with the purchase of Sarbit Asset Management Inc. (SAMI).

The Quebec-based insurer will tender its offer for all outstanding shares of Sarbit, and has already entered into lock-up agreements with shareholders representing 75% of the company’s shares.

Sarbit Asset Management was founded in 2005 by Larry Sarbit, who made his name as a mutual fund advisor with first Investors Group and then AIC, before striking out on his own.

“The decision to sell the company I founded was not an easy one,” said Sarbit, president and CEO of SAMI, “but I am happy to have found a buyer such as IA that is firmly committed to meeting the needs of investors and financial advisors.”

Sarbit’s $130 million in assets under management will be absorbed into Industrial Alliance’s existing mutual fund family, IA Clarington. Sarbit himself and the SAMI investment team will be retained to advise on the U.S. equity funds after the transaction is completed.

“Larry Sarbit is well known to financial advisors and investors in Canada,” said David Scandiffio, president of IA Clarington, in a press release. “He has managed large mutual funds with assets in excess of $2 billion, as well as smaller funds, such as the $85 million Sarbit U.S. Equity Trust, and done so through a full range of market cycles.”

The transaction is expected to close on or before October 31, 2008, subject to requisite shareholder and regulatory notifications and approval.

Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com

(09/09/08)