Canadian Imperial (CM) Expands In U.S., To Buy Cleary Gull
Zacks Investment Research | Jul 10, 2019 08:12AM ET
Toronto-based Canadian Imperial Bank of Commerce (TSX:CM) is expanding its presence in the United States. The company has inked a deal to acquire Milwaukee, WI-based Cleary Gull Inc., a boutique investment banking firm.
Acquisition of Cleary Gull, which specializes in middle market M&As, private capital placement and debt advisory across the United States, will expand Canadian Imperial’s deal-making capabilities. Notably, the terms of the deal, expected to close in the fourth quarter of 2019, remain undisclosed.
Canadian Imperial already has a U.S. capital markets presence in New York, Chicago and Houston. The company plans to integrate Cleary Gull operations with its existing Chicago-based investment banking division.
Canadian Imperial made Chicago its U.S. headquarters following the acquisition of PrivateBancorp in 2017. Since then, the bank has been pursuing to expand its “capabilities through a highly integrated approach across Commercial Banking, Wealth Management and Capital Markets.”
Michael Capatides, senior executive vice-president and group head, US Region, and president & CEO, CIBC Bank USA, said, “This acquisition is a further investment in our North American platform that will deliver enhanced Capital Markets capabilities for our clients, and support our diversification and growth objectives.”
Further, Ronald Miller, Cleary Gull’s president in the statement said, “With our focus on family and entrepreneur-owned business, as well as private equity firms, we are excited about the opportunities for our clients and our team as part of CIBC's growing business in the US.”
With Canadian Imperial facing a tough operating backdrop in Canada, this deal is expected to support its revenues, which are getting hampered by lower rates and muted loan growth. Also, the company is facing heightening competition from other Canadian banks, including The Toronto-Dominion Bank’s (TSX:TD) , Bank of Montreal (TSX:BMO) and Royal Bank of Canada (NYSE:RY) , among others.
Moreover, shares of this Zacks Rank #5 (Strong Sell) company have rallied 5.6% so far this year, underperforming the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.