Rockwater buys Yorkton’s private client business

(November 18, 2002) Rockwater Capital Corporation has reached a deal to acquire the private client business of Yorkton Securities Inc. for approximately $23 million.

Yorkton’s private client business will operate under the banner of First Associates Investments, the investment dealer for Rockwater. Approximately 200 brokers work for Yorkton’s private client group. Rockwater, an independent investment management firm, says the current advisory relationships of its new clients will remain intact.

Upon closing, First Associates will have more than $3.4 billion in assets under administration, over 500 employees including 228 investment professionals located in 11 centres from coast to coast.

Yorkton, one of Canada’s largest full-service brokerages, says it wants to focus on its institutional equities and investment banking operations. Rumours of the acquisition had circulated in recent weeks.

“The transaction increases our client asset base to $3.4 billion, provides First Associates with a national footprint and greatly enhances our ability to serve our individual wealth management clients. In addition, clients of our growing capital markets business will benefit from the firm’s enhanced distribution platform and relationship network,” said Bill Packham, president and CEO of Rockwater and First Associates, in a statement.

“When the proven capabilities of both Rockwater and First Associates are combined with Yorkton’s resources, the result will be a very powerful firm which will excel at serving clients across the country,” said William Fulton, president and COO of Yorkton.

Fulton will become deputy chair and COO of First Associates as well as COO of Rockwater. Bill Sacre will join Colman O’Brien as co-head of First Associates’ wealth management division. Rockwater says is not expected to be any significant disruption to employees of either company. Both companies are based in Toronto.

The transaction is subject to customary conditions, regulatory approval and approval by Yorkton shareholders. It will likely be a cash transaction.

Filed by Jim MacDonald, Advisor.ca, jmacdonald@advisor.ca. (11/18/02)