St. Louis-based Stifel Financial Corp. (NYSE: SF) has entered into a definitive agreement to acquire City Financial Corp. and its wholly-owned subsidiary City Securities Corp., Indiana’s oldest investment firm. Terms of the deal were not disclosed. Another City unit, City Securities Insurance LLC, is not part of the transaction.
Indianapolis-based City Securities Corp. was established in 1924 by J. Dwight Peterson and currently has eight offices in Indiana that manage about $4 billion in assets. The firm has also long been a kingpin in the municipal bond business.
Mike Bosway, who has been City’s chief executive officer since 1999, says local leadership will remain intact with the combined company. "I am also pleased that my entire team of top managers and all of our financial advisors and bankers have committed to this transaction by signing continuation agreements with Stifel, confirming their long-term belief in the combined organization," Bosway stated in a news release.
Stifel Chairman and CEO Ronald Kruszewski says the deal will boost the company’s wealth management and public finance businesses. "We have known the management team at City Financial for a long time and have always been impressed with their leading market position," said Kruszewski. "We believe the addition of City and its growing and profitable business to the Stifel platform further enhances the Company’s growing presence in these two attractive businesses."
The deal is expected to close in the first quarter of 2017.