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Stifel Financial (SF) Signs Agreement to Acquire Torreya

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Stifel Financial Corp. (SF - Free Report) has entered a deal to acquire Torreya Partners LLC. Torreya is an independent M&A and private capital advisory firm serving the global life sciences industry. The terms of the transaction have not been disclosed.

Ronald J. Kruszewski, the chairman and CEO of Stifel Financial, stated, “One in five dollars spent in the United States, and a growing percentage globally, is healthcare-related. This combination brings together two like-minded firms that drive innovation with forward thinking and creative solutions for clients. I look forward to welcoming the Torreya team to Stifel.”

Brad Raymond, the global head of investment banking at Stifel Financial, said, “Over the past 15 years, Torreya has built a strong reputation as a trusted advisor to global life sciences companies, especially in complex and transformational deals that often require unique approaches and structures. We have been very impressed with the breadth and quality of Torreya’s relationships, which include entrepreneurs and growth-focused corporations, along with venture capitalists and specialty healthcare investors. Without question, this partnership helps solidify Stifel’s leadership position across healthcare.”

Stifel Financial’s global healthcare investment banking team, led by co-heads Mark Dempster and Declan Quirke, has advised on 700 total M&A and capital raising transactions since 2010. SF’s presence in the healthcare sector goes beyond investment banking, and includes a dedicated equity research offering, a dedicated specialist sales force and a flagship annual healthcare conference, which attracts 1,000 industry participants.

Over the past year, shares of Stifel Financial have lost 19% compared with a decline of 11.3% recorded by the industry.

 

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Inorganic Growth Efforts by Other Firms

Recently, F.N.B. Corporation (FNB - Free Report) completed the acquisition of Greenville, SC-based UB Bancorp. UB Bancorp's bank subsidiary, Union Bank, merged with FNB's bank subsidiary, First National Bank of Pennsylvania. The acquisition bolstered FNB’s presence in North Carolina and added “low-cost granular deposits,” which will likely be accretive to its financials amid the present economic backdrop.

Similarly, New York Community Bancorp, Inc. closed the acquisition of Flagstar Bancorp, Inc. With this, the combined entity becomes the 24th largest regional bank (based on total assets) in the country.

Per NYCB management, “The merger creates a company with significant scale and capabilities with a more diversified loan portfolio, an improved funding mix, and a much better interest-rate risk profile."


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