BMO acquires Burgundy to cater to ‘ultra-high-net-worth clients’

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BMO Financial Group announced Thursday that it is buying Burgundy Asset Management Ltd., a Toronto-based private investment firm, for approximately $625 million in shares.

In a news release, BMO called Burgundy a “leading independent wealth manager” that provides “discretionary investment management” for its clients, which include private individuals, foundations and endowments.

Burgundy will become part of BMO’s wealth management unit, strengthening its reach into the Canadian investment space catering to “high-net-worth and ultra-high-net-worth clients,” the bank said.

As of May 31, Burgundy had approximately $27 billion in assets under management, according to the release. The company, founded in 1990, has 150 employees with offices in Toronto, Vancouver and Montreal.

“Burgundy Asset Management is one of Canada’s most respected independent investment managers known for its high calibre team, rigorous investment process and dedicated service to private clients, institutions and family offices,” Deland Kamanga, group head of wealth management at BMO, said in the release.

“The acquisition will build on BMO’s heritage as a client-focused wealth manager while expanding our wealth advice and private investment counsel offering.”

Burgundy’s current chief executive, Robert Sankey, will continue to lead the business going forward, and co-founders Tony Arrell and Richard Rooney will also remain with the company, BMO said.

“It has always been our intention to build Burgundy for the long run, so we can serve our clients and their families across generations,” Arrell, who also serves as chairman of Burgundy, said in the release.

“We are happy to be joining BMO, a North American leader, and believe this is a great opportunity to continue to serve our clients well into the future.”