The Co-operators subsidiary amalgamates with Quebec firm

The Co-operators Group Ltd. and Montreal-based institutional investment management firm Addenda Capital Inc. (TSX: ADV) have announced that Addenda will amalgamate with a subsidiary of The Co-operators (Newco).
The transaction, which values Addenda’s equity at approximately Cdn$306.5 million, will be implemented by way of a statutory amalgamation under the Companies Act (Quebec) and is subject to customary conditions precedent, including approval of the amalgamation by shareholders of Addenda and obtaining any regulatory approvals, a Co-operators release says.
Soon after the completion of the amalgamation, the business of Co-operators Investment Counselling Limited, a wholly-owned subsidiary of The Co-operators, will be combined with that of Addenda.
The combined entity will be known as Addenda Capital Inc. and will be headed by Michael White who will become president and CEO, the statement continues.
Most of Addenda’s management will continue to serve in their current capacity within the new organization.
“This transaction creates a national investment manager of significant scale and offers existing clients of Addenda and Co-operators Investment Counselling Limited excellent choice in diversification of asset classes, management styles and capabilities,” said Kathy Bardswick, president and CEO of The Co-operators.
“The two companies complement each other well, and this acquisition supports The Co-operators strategic goal of significantly growing our presence in Quebec.”