TORONTO – BlackRock, Inc. (NYSE: BLK), Guggenheim Partners, LLC (“Guggenheim”), and Claymore Investments, Inc. (“Claymore Canada”) today announced that BlackRock has entered into a definitive agreement to acquire Claymore Canada. Upon closing, the transaction will augment BlackRock’s world-class roster of investment fund products and deepen the Company’s footprint in Canada.
Based in Toronto, Claymore Canada is an independent subsidiary of Guggenheim Funds Services Group, a subsidiary of Guggenheim Partners, LLC.
“This transaction brings together two innovative investment fund providers and creates an unparalleled opportunity to serve our Canadian clients,” said Bill Chinery, head of BlackRock Canada. “Claymore Canada brings a complementary set of ETFs to the world-class iShares® range of products and enhances our ability to compete against other investment fund providers in Canada.”
Som Seif, president and CEO of Claymore, commented, “Advisors and investors have embraced Claymore Canada products as valuable components of their investment portfolios.” BlackRock's global breadth and scale provide an excellent platform for Claymore Canada to begin its next, exciting chapter. With best-in-class risk management and operational resources, powerful distribution potential and a shared commitment to putting clients first, the combined business will offer strong opportunities for future growth."
“Our investment in Claymore Canada embodies Guggenheim’s philosophy of supporting industry innovators and preeminent investment managers,” said Todd Boehly, president of Guggenheim Partners. “We couldn’t be more pleased with the result of our partnership with Som and his team in Canada, and remain strongly committed to growing our ETF business in the United States.”
At December 31, 2011, BlackRock offered 48 ETFs in Canada under the iShares® brand, representing C$29.0 billion in assets under management (“AUM”) and Claymore Canada offered 34 ETFs and two closed-end funds representing C$7.0 billion in AUM. The Canadian funds market totaled C$832.6* billion at June 30, 2011.
"This combination of two great businesses will set a new standard for service delivery and product offerings in Canada," said Mary Anne Wiley, head of iShares Canada, BlackRock. "Without question this will enhance our ability to deliver excellence in innovation, quality and choice – attributes for which our iShares brand is known around the globe."
Following the appropriate regulatory, and satisfaction of customary closing conditions, the transaction is expected to be completed by the end of the first quarter of 2012. Terms of the all cash transaction, which will be neutral-to-modestly accretive to BlackRock’s 2012 earnings, were not disclosed.
Addendum: Guggenheim was advised on the transaction by JP Morgan Securities, LLC, RBC Dominion Securities, Inc and Freeman & Co. Securities, LLC.
About Guggenheim Partners
Guggenheim Partners is a privately held global financial services firm with more than $125 billion in assets under management. The firm provides asset management, investment banking and capital markets services, insurance, institutional finance and investment advisory solutions to institutions, governments and agencies, corporations, investment advisors, family offices and individuals. Guggenheim Partners is headquartered in New York and Chicago and serves clients throughout North America, Europe and Asia from more than 25 offices in 10 countries. For more information, please visit www.guggenheimpartners.com
About Claymore Investments
Claymore Investments is a leader in offering innovative exchange-traded funds in Canada through its family of 34 ETFs and 2 closed-end funds across a broad range of asset classes including core equity, fixed income and commodities with approximately $7.0 billion in assets under management. For more information, please visit www.claymoreinvestments.ca
*Source: Investor Economics, Inc.