Dain Rauscher to acquire East Coast brokerage FBW

FWR Staff

20 February 2008

Buy-up extends reach into U.S. markets with addition of mid-Atlantic broker. RBC Dain Rauscher plans to buy Baltimore-based broker-dealer Ferris Baker Watts . Dain, a subsidiary of Toronto-based Royal Bank of Canada , says the move deepens its footprint in the eastern U.S. and supports RBC's commitment to extending its reach into U.S. private-client markets.

"The acquisition of FBW demonstrates RBC's continued commitment to building our wealth-management presence in the U.S. and takes us one step closer to our goal of becoming a nationally recognized investment, advisory and wealth management firm," says Dain's CEO John Taft.

Eastward ho

Details of the transaction, which is expected to close by the end of June 2008, weren't disclosed.

Though Baltimore-based FBW has 42 offices in 10 states and the District of Columbia, most of these branches are in the mid-Atlantic region. It claims $18.5 billion in "assets under administration." About a third of 900 employees are financial consultants.

Minneapolis-based Dain does more of its business in the U.S. Midwest than in any other single region.

FBW's CEO Roger Calvert points to a close cultural fit between FBW and Dain. "From the very start of our discussions with RBC, it became clear that they share our commitment to integrity and excellent service," he says.

Dain made a similar play about this time last year, when it came out with plans to buy JB Hauer, a Parsippany, N.J.-based brokerage with five offices in New Jersey, Pennsylvania and Florida and, at the time, about $10 billion in assets under administration.

Dain, a part of RBC's wealth-management segment, has around $500 billion in assets under administration and over $160 billion in assets under management.

RBC brings in about a quarter of its revenue from its U.S. activities. -FWR

Purchase reproduction rights to this article.