Raymond James has agreed to buy Scout Investments and Reams Asset Management from UMB Financial for $172.5 million in cash.
Scout and Reams will join Raymond James’ subsidiary Carillon Tower Advisers, an asset management firm that counts Eagle Asset Management, ClariVest Asset Management and Cougar Global Investments as affiliates.
Founded in 1982 as a division of Kansas City, Missouri-based UMB, Scout Investments and its Reams Asset Management division have a combined $27 billion under management and advisement.
Reams is an institutional-focused fixed income specialist, while Scout is an equity asset manager.
The transaction is expected to close by the end of 2017, upon which time Scout and Reams will become a wholly-owned subsidiary of Carillon Tower Advisers, with projected combined assets under management and advisement in excess of $60 billion.
UMB plans to use the proceeds from the deal to support its current growth strategies.
The company said in a conference call Thursday morning that the transaction will ‘allow us to allocate more time, energy and capital to our core banking businesses as well as our asset servicing operations.’
RBC Capital Markets LLC served as exclusive financial advisor and Stradley Ronon Stevens & Young LLP served as legal counsel to UMB in this transaction.
‘The addition of these well-recognized franchises to our multi-boutique model is a natural extension of our long-term growth strategy,’ said Carillon Tower president and chairman Cooper Abbott.