Raymond James To Buy UMB Units

Raymond James agreed to buy two investment businesses from UMB Financial Corp. for $172.5 million, adding about $27 billion in assets under management (AUM).

Scout Investments and Reams Asset Management will become wholly owned subsidiaries of Raymond James’s Carillon Tower Advisers, the St. Petersburg, Florida-based company said Thursday in a statement.

Reams is a fixed-income specialist, while Scout is an equity asset manager.

The all-cash deal is expected to be completed by year-end, Kansas City, Missouri-based UMB said in a separate statement.

CEO Paul Reilly has been on an acquisition binge as the brokerage seeks to expand outside the U.S. and build out its asset-management business.

In the past year, Raymond James has agreed to buy Montreal-based wealth manager MacDougall MacDougall & MacTier Inc. and the U.S. private client unit of Deutsche Bank AG.
“Building on our strong foundation of asset-management expertise is a key component of the firm’s growth strategy,” Reilly said in the statement.
“Scout and Reams bring complementary cultures and management philosophies to the asset-management division.”
Raymond James shares slipped 0.2%, to $72.70 at 10:05 a.m. in New York.
The stock has gained 4.8% this year.

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