BMO Capital Markets to boost U.S. municipal bond market presence with acquisition
- BMO Capital Markets (TSX:BMO) has agreed to buy Chicago municipal bond dealer Griffin, Kubik, Stephens & Thompson Inc. for an undisclosed amount, building its presence in U.S. municipal bond market.
The investment and corporate banking arm of BMO Financial said the acquisition will make it the sixth-largest bank-qualified municipal bond dealer in the United States and the largest in Illinois.
"This acquisition allows us to grow our U.S. fixed income business by broadening our scope and more than doubling the size of our municipal bond business," BMO Capital Markets CEO Tom Milroy said in a statement.
GKST specializes in debt securities including municipal bonds, U.S. Treasury debt, agencies and mortgage-backed securities.
The company employs more than 100 people and caters to institutional and individual investors as well as U.S. government agencies, schools and non-profit issuers. It has offices in Chicago, Monticello, Ill. and Milwaukee, serving clients in 47 states and Puerto Rico.
"GKST's national presence in municipal banking along with a strong and well diversified investor base positions us very well for the future as more U.S. municipalities seek to finance their infrastructure needs," Milroy said.
The acquisition is expected to close in June, subject to approvals from U.S. and Canadian regulators.
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