Ord Minnett has entered into an agreement to buy rival Australian wealth management group E.L & C. Baillieu.
The purchase will see it gain E.L & C. Baillieu’s nine locations around Australia, including its Melbourne head office.
E.L. & C. Baillieu will continue to operate under its name, although it will now be a wholly-owned subsidiary of Ord Minnett (Ords), marking a change in its 131 years’ history.
The pair have been competitors in the Australian wealth scene since Ords was established in 1951.
E.L. & C. Baillieu shareholders had voted overwhelmingly in favour of the acquisition, after the two companies began the process in June.
The integration of the two firms will take place over the next 12 months.
Ords chief executive and managing director Karl Morris said the acquisition was felt to be a “strong strategic and cultural fit”.
“The combination of E.L. & C. Baillieu’s brand, heritage and history, private stockbroking business, its adviser network, its client-base and operational synergies will cement Ords as a respected Australian wealth brand,” Mr Morris said.
“The scale benefits and self-clearing of the two businesses will allow us to be leaders in financial advice. This new amalgamation can only serve to benefit Australian investors and our clients for many more generations to come.”
E.L. & C. Baillieu chair Jo Dawson said the consolidation will bring opportunities for both clients and staff.
“Having received strong interest from the stockbroking community, Ord Minnett was determined to be the perfect fit for our business and I believe that the combination of the two firms will position E.L. & C. Baillieu well for the structural changes transforming our industry,” Ms Dawson said.
E.L. & C. Baillieu was advised by Deloitte Corporate Finance and King & Wood Mallesons, while Ord Minnett was advised by InterFinancial Corporate Finance and McCullough Robertson.
The deal has taken place after IOOF and JP Morgan sold off their stakes in Ords to a consortium of private investors for more than $160 million last year, after they had owned it for more than a decade.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].