Raymond James to acquire Charles Stanley in $387M deal

St. Petersburg-based Raymond James Financial Inc. is preparing to acquire the entire share capital of London-based wealth management firm Charles Stanley Group PLC. 

The acquisition is estimated to be a $387 million deal in U.S. dollars (or roughly $280 million in British pound sterling). It’s expected to close in the fourth quarter, Raymond James (NYSE: RJF) announced on Thursday. 

The acquisition will allow Raymond James to accelerate its growth in the U.K., and Charles Stanley will bring 200 additional wealth managers to the table.

“We have long admired Charles Stanley’s reputation, heritage and its talented pool of wealth managers and professionals,” Raymond James CEO Paul Reilly said in a prepared statement. “The two firms share a common, and increasingly rare, client-centric approach whereby the primary client relationship is held by the individual wealth managers. We both offer employed and self-employed affiliation models, while Raymond James also provides platform services, enabling the flexibility that wealth managers value. Further, Charles Stanley meets Raymond James’s historical acquisition criteria, in particular as an excellent strategic fit with a complementary culture.”

Paul Abberley, Reilly’s counterpart at Charles Stanley, said the board believes the terms from Raymond James represent fair value.

As part of the acquisition, Raymond James will replace some or all of Charles Stanley’s other non-executive directors, according to the release. 

Meanwhile, Charles Stanley is expected to continue to do business as Charles Stanley, a division of Raymond James, and will operate as a stand-alone division and subsidiary and keep its presence in the U.K. 

The news follows Raymond James’ third-quarter earnings report released on Wednesday, in which the company reported net revenues of $2.47 billion and net income of $307 million, or $2.18 per diluted share.