KANSAS CITY, Mo.--(BUSINESS WIRE)--
UMB
Financial Corporation (Nasdaq: UMBF) announced today the execution
of an agreement to sell 100 percent of the stock of Scout Investments,
Inc. (Scout), its institutional investment management subsidiary with
$27.3 billion in assets under management (as of Dec. 31, 2016), to
Carillon Tower Advisers, a unit of Raymond James Financial, for $172.5
million in cash, subject to purchase price adjustments at closing. The
company plans to use the proceeds from the transaction to support its
current growth strategies.
“The decision to sell Scout Investments comes at a time when our company
has evolved,” said Mariner Kemper, chairman and CEO of UMB Financial
Corporation. “This transaction allows us to invest more time, energy and
capital resources into our core businesses. We’re excited by this
opportunity and what it means to be a relationship-based, diversified
financial services company with a focus on enhancing long-term
profitability.”
Kemper continued, “At the core of our business model is diversified
revenue, with noninterest income from the Bank and Fund Services
representing 44.7 percent of their combined total revenue in 2016,
compared to 27.9 percent median from our peers. Scout has been an
integral part of our company for more than 30 years, and we believe we
have found the right partner for them in Carillon Tower Advisers, whose
sole focus is on institutional-quality investment management, and brings
enhanced distribution capabilities and scale to Scout.”
The transaction has been approved by the boards of directors at both
companies, is anticipated to close by the end of the calendar year and
is subject to customary closing conditions, including mutual fund board
approval and consents of the mutual fund shareholders and certain
advisory clients. Both companies will continue to conduct business as
usual in the interim.
RBC Capital Markets LLC served as exclusive financial advisor and
Stradley Ronon Stevens & Young, LLP served as legal counsel to UMB in
this transaction.
Investor Conference Call
UMB plans to host a listen-only conference call to discuss the details
of the transaction at 8:00 a.m. CT, today, Thursday, April 20.
Interested parties may access the call by dialing (toll-free)
877-267-8760 or (U.S.) 412-542-4148 and requesting to join the UMB
Financial call. The call can also be accessed by visiting the investor
relations area of umbfinancial.com
by using the following link:
UMB
Financial Investor Update Call
A replay of the conference call may be heard until May 4, by calling
(toll-free) 877-344-7529 or (U.S.) 412-317-0088. The replay pass code
required for playback is 10104837. The call replay may also be accessed
via the company's website umbfinancial.com
and visiting the investor relations area.
About UMB
UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial
holding company headquartered in Kansas City, Mo., offering complete
banking services, payment solutions, asset servicing and institutional
investment management to customers. UMB operates banking and wealth
management centers throughout Missouri, Illinois, Colorado, Kansas,
Oklahoma, Nebraska, Arizona and Texas, as well as two national
specialty-lending businesses. Subsidiaries of the holding company
include companies that offer services to mutual funds and
alternative-investment entities and registered investment advisers that
offer equity and fixed income strategies to institutions and individual
investors. For more information, visit umb.com,
umbfinancial.com,
blog.umb.com
or follow us on Twitter at @UMBBank, Facebook at facebook.com/UMBBank
and LinkedIn at linkedin.com/company/umbbank.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170420005285/en/
UMB Financial Corporation
Media Contact:
Rachael
Crocker, 816-860-7775
Rachael.Crocker@umb.com
or
Investor
Relations Contact:
Kay Gregory, 816-860-7106
Kay.Gregory@umb.com
Source: UMB Financial Corporation