Royal Bank of Canada to buy Tucker Anthony for 0.73 times revenue

Weekly Corporate Growth Report, Aug 6, 2001

The Deal: Royal Bank of Canada has agreed to purchase Tucker Anthony Sutro for $610.8 million. The acquisition furthers Royal Bank's quest to expand in the United States. After news of the transaction was announced, shares of Tucker fell 49 cents to close at $23.95.

Discussion: Tucker Anthony Sutro is the holding company for Tucker Anthony in Boston and Sutro & Co. in San Francisco. The company is merging the two units to cut costs. The firm offers retail brokerage, capital markets, trading and asset management to individual and institutional clients. Subsidiary Freedom Capital Management provides asset management to affluent clients, as well as to Tucker Anthony and Sutro investors. Other units include OTC trading firm Hill, Thompson, Magid and brokerage Branch Cabell & Co.

Royal Bank of Canada is Canada's largest financial institution. The bank is a leading provider of personal deposit products, residential mortgages, consumer and business loans, and wealth management services. Royal Bank of Canada also offers insurance and corporate and investment banking. In addition to more than 1,300 domestic locations, the bank has some 300 offices in more than 30 other countries.