Mergers and Acquisitions

Richardson Financial Group in the sale of Richardson GMP to GMP Capital Inc.

Richardson Financial Group
Key Contact
Douglas Bryce

National Managing Partner, Toronto

Team
James R. Brown

Partner, Corporate, Toronto

Alex Gorka

Partner, Corporate, Toronto

Kaeleigh Kuzma

Partner, Competition/Antitrust and Foreign Investment, Calgary

On October 20, 2020, GMP Capital (GMP) consolidated its ownership of Richardson GMP Limited (Richardson GMP).

Pursuant to a definitive purchase agreement dated August 13, 2020, as amended, between GMP and Richardson Financial Group Limited, GMP acquired all of the shares of Richardson GMP that it did not already own for 1.76 common shares of GMP per share of Richardson GMP. GMP Capital has commenced a substantial issuer bid to repurchase up to $40 million of its common shares. Prior to the sale, Richardson GMP was owned as to one-third by each of GMP, Richardson Financial Group and Richardson GMP investment advisors.

The transaction follow’s GMP’s 2019 sale of its former capital markets business to Stifel and allows GMP to proceed with its wealth management-focused growth strategy. GMP Capital will be renamed to RF Capital Group Inc.

Richardson Financial Group is a private equity firm specializing in providing investment management, advisory and other related services to customers across Canada. As a result of the transaction, Richardson Financial Group is expected to hold more than 40% of the outstanding common shares of GMP.

Osler, Hoskin & Harcourt LLP advised Richardson Financial Group with a team led by Doug Bryce and James Brown, and including Alex Gorka and Thomas Strachan (Corporate) and Kaeleigh Kuzma (Competition).

Value
-
Date Closed
October 20, 2020
Lead Office
Toronto
Key Contact
Douglas Bryce

National Managing Partner, Toronto

Team
James R. Brown

Partner, Corporate, Toronto

Alex Gorka

Partner, Corporate, Toronto

Kaeleigh Kuzma

Partner, Competition/Antitrust and Foreign Investment, Calgary