BMO Announces
Intent to Acquire Gerard Klauer Mattison, Continues Strategic U.S. Expansion
Expands Equity Research, Sales and Trading Capabilities
TORONTO, April
4, 2003 - BMO Financial Group (TSX, NYSE: BMO) today continued its
strategic approach to expansion in the United States with the announcement
that it has signed a definitive agreement to purchase New York-based
Gerard Klauer Mattison (GKM).
The acquisition
establishes a solid equity research, sales and trading platform in the
United States. It also strengthens the organization's Canadian franchise
by providing significantly expanded research on U.S. companies to BMO's
Canadian institutional clients, and accelerates BMO's growth in key
markets across the U.S.
"This acquisition
is a sound strategic fit that will benefit our Canadian clients and
advance our U.S. growth strategy," said William Downe, Deputy Chair,
BMO Financial Group and Chief Executive Officer, BMO Nesbitt Burns.
"GKM is also a significant addition to the equity division of BMO
Nesbitt Burns, further enhancing the firm's outstanding sales, trading
and research capabilities."
GKM is a privately
owned mid-market investment bank with 195 employees in offices in New
York, Chicago, Boston, San Francisco and Los Angeles. It brings a strong
team of experienced equity research, equity sales and trading and investment
banking professionals. The acquisition is highly complementary to BMO
Nesbitt Burns, BMO's full-service North American investment bank and
Harris Nesbitt, its Chicago-based mid-market investment and corporate
banking group.
The acquisition
will allow BMO Nesbitt Burns to significantly enhance its existing U.S.
equity research coverage to Canadian institutional clients. GKM is also
expected to deliver an immediate benefit to BMO's Media & Communications
and Energy groups based in New York, Houston, Calgary and Toronto by
expanding equity capital market and research capabilities to these sectors.
In the U.S. mid-market,
GKM presents a significant opportunity to Harris Nesbitt, allowing it
to offer a broader range of products and services to clients. GKM adds
an additional 650 investing and issuing clients to Harris Nesbitt's
current roster of 1,500.
The acquisition
is the eleventh by BMO Financial Group in the U.S. in less than four
years. The purchase price of the transaction is approximately $US 30
million ($CDN 44 million) subject to certain adjustments, and will be
satisfied by exchanging BMO stock for the outstanding shares of GKM.
It is expected to close within 90 days, subject to regulatory approval.
GKM will be known
as Harris Nesbitt Gerard and become the U.S. equity research, sales
and trading platform of BMO Nesbitt Burns. BMO Nesbitt Burns offers
corporate, institutional and government clients access to a broad range
of products and services including equity and debt underwriting, corporate
lending and project financing, merger and acquisition advisory services,
merchant banking, cash management services, research, sales and trading.
Through offices in more than 20 locations in North America and around
the world, BMO Nesbitt Burns works proactively with clients, matching
innovation and expertise with a diverse and integrated product base
to provide the right financial solution.
About BMO Financial
Group
Established in 1817, as Bank of Montreal, BMO Financial Group (NYSE,
TSX: BMO) is a highly diversified financial services organization. With
average assets of CDN $259 billion as at January 31, 2003 and more than
34,000 employees, BMO provides a broad range of retail banking, wealth
management and investment banking products and solutions. BMO Financial
Group serves clients across Canada and in the United States through
its Canadian retail arm BMO Bank of Montreal, Chicago-based Harris Bank,
a major U.S. mid-west financial services organization which also has
wealth management offices across the United States, and BMO Nesbitt
Burns, one of Canada's leading full-service investment firms.
About Gerard
Klauer Mattison
GKM was founded in 1989 as an equity research, sales and trading boutique
dedicated to the institutional marketplace. Since then, the firm has
grown with distinctive strengths in a broad range of capabilities including
public offerings and private placements, advisory services, including
mergers and acquisitions, fairness opinions, valuations and restructurings,
strategic partnerships and joint ventures. GKM has 195 employees at
offices in New York, Boston, Chicago, San Francisco and Los Angeles.
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