In an effort to expand both its private client wealth management and capital markets businesses, and noting that timing and pricing are right, Raymond James Financial Inc. has entered into a definitive stock purchase agreement to acquire Morgan Keegan & Company Inc. and related affiliates from Regions Financial for $930 million. Memphis-based Morgan Keegan’s Lafayette office is located in River Ranch; it has eight financial advisers with four assistants, one insurance specialist, an office manager and a receptionist.
In all, the acquisition will add 1,000 private client financial advisers to Raymond James’ adviser count, bringing it to more than 6,000. Raymond James is headquartered in St. Petersburg, Fla. At least for the foreseeable future, it is expected that the name Morgan Keegan will be retained.
Regions Financial will also receive a $250 million dividend from Morgan Keegan, bringing the total value of the deal to the bank to $1.18 billion. The deal is expected to close by March 31 of this year.
“While our preference is generally organic growth, we have used strategic mergers to grow throughout our history when the timing and pricing are right and, most importantly, when there is a strong cultural fit and clear path for integration,” Raymond James CEO Paul C. Reilly said in announcing the acquisition. “This merger reflects those tenets. Morgan Keegan private client and capital markets professionals are well-respected in the industry for their capabilities and client-service orientation. Bringing them to Raymond James and working with their excellent management teams represents a major step toward achieving our vision of being the premier alternative to Wall Street.”
The combined businesses of two of the Southeast's biggest brokerages will create one of the country’s largest full-service wealth management and investment banking firms not headquartered on Wall Street.
Regions is expected to use the proceeds from the sale to help pay off its $3.5 billion debt to the U.S. government, money it received as part of the Troubled Asset Relief Program.
Listing acquisition highlights, Raymond James noted that Morgan Keegan, with an anticipated $700 million tangible book value at closing, has demonstrated stability and profitability across economic and market cycles. Together, the firm expects its financial planning, high-net-worth and retail front-end support systems to drive greater financial adviser productivity.
As part of the merger, Morgan Keegan CEO John Carson will join Raymond James Financial as president and will oversee Fixed Income and Public Finance. Other senior leaders from Morgan Keegan will be joining the firm in roles yet to be determined.
Raymond James, which celebrates its 50th anniversary this year, affirmed its commitment to maintaining a large presence in Memphis, Tenn., where it has had retail and institutional offices for years prior to the merger. Raymond James’ Fixed Income and Public Finance businesses will be centered in Memphis, and the firm intends to continue to operate a regional support center there.
Read more about the acquisition here.
Shoppers familiar with Louisiana-based Rouses Market might be surprised when they walk into the new third location set to open at the Corner of Johnston Street and Duhon Road south the Acadiana Mall on Wednesday.
Noted architect and co-founder/principal of Architects Southwest receives highest honor given to former student.
Know an innovator, job creator and visionary with a penchant for hard work? We want to know that person.
If you care about the wellbeing of Louisiana’s college students, vote against Amendments 1 and 2.
A Mandeville media consultant with big name political connections pleaded guilty Monday to a series of federal mail fraud charges.
Despite a decline in global oil prices affecting the outlook for domestic ethylene producers, South African company moves forward.
1,595 rigs were exploring for oil and 332 for gas. A year ago there were 1,738 active rigs.
Prestigious honor annually recognizes a single attorney for excellence in public interest/pro bono work.
JPMorgan Chase is giving $1 million to Louisiana's community and technical colleges, to help with workforce training efforts to match students to available jobs.
Law firm unveils newly renovated 200-year-old building.
UL grad named web developer at BBR Creative
Lafayette-based emergency department staffing and management company raises $120 million in senior credit facilities through GE Capital, Healthcare Financial Services.
High-rise apartment building, parking garage, hotel and retail part of new development.
The number of Louisianans with jobs continued to set records in September, but the state's unemployment rate kept rising.
Louisiana is drowning, quickly.
An investment group led by Macquarie Infrastructure and Real Assets will buy the Louisiana power company Cleco for $3.4 billion.
Local developer’s Lake Charles Gardens LLC purchases buildings and leases; land still owned by Dugas family.
Economist Loren Scott says Louisiana is in the midst of an industrial boom unlike any other in its history, with more than $100 billion in industrial projects either under construction or in the engineering and design phase.
The Louisiana Treasury holds $18 million in Israel Bonds — bonds that earn 2.868 percent when the three-year U.S. Treasury is yielding 1.08 percent.
ABiz celebrates another class of Acadiana's most influential female trailblazers, the Lourdes Foundation honors a local philanthropist and MedExpress in Opelousas celebrates its 22nd year as the “little ambulance service that could.”
Is Louisiana’s O&G industry ready to head south of the border?
Downtown’s newest live-work space for creatives doubles as a gallery for other upcoming artists to show their work.
A maritime case originating in Lafayette federal court could become a game changer for the oil and gas industry.
Here’s what’s at stake in the November Senate race — regardless of whether Republicans gain control of the upper chamber.
From the publisher’s in-box: ABiz reaches out to Lake Charles, time to “Come Home, Louisiana,” and now accepting nominations for Entrepreneur of the Year.