CI Financial is acquiring Sentry Investments. The deal will see two of Canada's largest independent mutual fund companies join forces.
In an announcement Aug. 10, the two companies stated that CI will purchase all of the outstanding shares of Sentry and its subsidiary Sentry Investments Inc., for $780 million. Of this total, $230 million will be paid in cash and the balance in CI shares. The deal, subject to regulatory approvals, is expected to close on or about Sept. 29.
Greater scale is the key to being competitive
"We're very pleased to be adding a firm of this quality to the CI Financial group of companies as it will significantly enhance our position as a Canadian independent global asset manager," said Peter W. Anderson, CI's Chief Executive Officer. "The combined company will enjoy greater scale, which is key to being competitive in the investment industry today."
Sentry has a lineup of more than 45 mutual funds and other investment solutions with about $19.1 billion in assets as of July 31. The deal will increase CI's assets under management by 16 per cent to approximately $140 billion, from $120.4 billion at July 31, 2017. Total assets (assets under management plus assets under advisement) will increase to approximately $180 billion.
Sentry will remain a standalone brand
Sentry will remain a standalone brand following the acquisition, says the announcement.
"Sentry is excited to join the CI group of companies," said Philip Yuzpe, President and Chief Executive Officer of Sentry. "Sentry will remain a leading Canadian investment management firm, now benefiting from the support of CI's best-in-class investment platform."