Two of Australia's most venerable wealth management firms have joined forces with Ord Minnett announcing today it would buy E.L. & C. Bailleu.
With both firms able to claim founding links back to the 19th century, the move will give the new entity 259 years' experience in managing wealth.
The deal will see Ord Minnett take 100 per cent control of E.L. & C. Bailleu for an undisclosed amount.
It will also add Bailleu's $11 billion in client funds to Ord Minnett's $35 billion in funds under management.
With EL & C Bailleu having been founded in 1889, Ords also decided it was a brand to hang on to and will continue to operate under its name as a wholly owned subsidiary.
Ords, which was founded in 1951 by two World War II veterans but through acquisitions can trace a history back to 1872, said the purchase was a highly welcomed strategic move which further strengthened Ord Minnett as one of Australia's highly respected and largest independent private wealth firms.
Ords CEO and managing director Karl Morris said the purchase was 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.," he said
"The scale benefits and self-clearing of the two businesses will allow us to be leaders in financial advice."
E.L. & C. Baillieu chair Jo Dawson said shareholders voted overwhelmingly in favour of the move.
"The transaction will bring together two of Australia's longest standing stockbroking firms, and provide many exciting opportunities for our clients and staff," she said.
"Having received strong interest from the stockbroking community, Ord Minnett were 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."
Business News Australia