(Bloomberg) — Stifel Financial Corp., the Missouri-based investment bank known for snapping up regional rivals and Wall Street castoffs, agreed to buy Barclays Plc’s U.S. wealth management business.
Barclays had about 180 financial advisers in the U.S. managing $56 billion in total client assets as of May 31, St. Louis-based Stifel said Monday in a statement that didn’t include terms. Barclays had bought the unit with other Lehman Brothers Holdings Inc. operations in 2008 and was faulted by regulators last year for inadequate internal controls there.
Stifel Chief Executive Officer Ron Kruszewski has made more than two dozen acquisitions since taking the helm in 1997, boosting net revenue every year to build one of the largest U.S. securities firms based outside of New York. To complete the Barclays deal, he’ll have to convince the financial advisers that they shouldn’t leave for other firms, which generally offer bonuses for brokers who can bring their clients.
“We believe that we have proposed an attractive retention package,” Kruszewski, 56, said on a conference call, adding that a “significant majority” of Barclays’s brokers had expressed interest in joining.
Stifel’s targets since the financial crisis have included Sterne Agee Group Inc., KBW Inc. and Thomas Weisel Partners Group Inc. The Barclays deal is expected to be completed in mid- November, the firm said.
Stifel gained 0.3 percent to $57.18 at 9:33 a.m. in New York trading, while Barclays fell 0.9 percent to 263.05 pence in London.