Canadian firm Gluskin Sheff + Associates has closed its acquisition of Blair Franklin Asset Management Holdings.

Canadian firm Gluskin Sheff + Associates has closed its acquisition of Blair Franklin Asset Management Holdings.

The total purchase consideration consisted of $15 million in cash payable at closing, as well an issue of 1.9 million shares; 0.71 million shares are subject to a one-year holding period, with 1.19 million shares held in escrow for two years following closing, subject to clawback based on AuM at the end of a two-year period.

The transaction is expected to be accretive to the company's earnings per share in the first year, excluding amortization and any non-recurring items arising from the transaction, Gluskin Sheff said.

Boutique wealth management firm Blair Franklin currently holds $635 million in AuM and runs two funds: the Blair Franklin Global Credit Fund and the Blair Franklin Global Rates Fund. It specializes in both Canadian and global fixed income markets, as well as the risk management capabilities accompanying these.

Senior-level staff will transition roles in the move; Blair Franklin’s managing director and chief investment officer will become executive vice president and head of fixed income at Gluskin Sheff, and will also join its management committee. Equally, Blair Franklin chair Thomas MacMillan will be appointed to Gluskin Sheff’s board of directors.

According to an earlier statement from the firm, employment agreements were put in place for key employees with standard non-competition and non-solicitation clauses.

Gluskin Sheff is a wealth management firm headquartered in Toronto which provides equity and fixed income investment portfolios for clients, as well as managing alternative investments.