Canadian Western Bank has signed a definitive agreement to acquire for cash 72.5% ownership of Adroit Investment Management Ltd., the bank announced Monday.

Adroit is an Edmonton-based firm specializing in wealth management for individuals, corporations and institutional clients, with assets under management approaching $1 billion. Its financial products and services are a strong strategic fit with existing banking and trust operations at Canadian Western Bank, according to a company release.

Specific financial details of the deal, which is subject to regulatory approval, have not been released. The transaction is expected to provide a modest positive earnings impact at the onset. Estimated goodwill from the transaction will have a minor impact on the bank’s overall regulatory capital position, Canadian Western Bank said.

The acquisition is part of a strategic objective to enhance the bank’s revenue diversification and earnings growth. Canadian Western Bank said the transition of ownership would be essentially seamless with no disruption to customers or employees.

“Adroit is recognized for its history of strong performance and its commitment to superior customer service, fundamentals very similar to those of the Bank,” said Larry Pollock, president and CEO of Canadian Western Bank, in a statement. “We are excited to welcome Adroit’s entire team of professionals and look forward to working with them as we continue to add value for clients and CWB shareholders.”

Adroit’s executive management will retain a minority ownership in the company, committed to continue building the business.

“This is a tremendous opportunity for Adroit to join forces with a premier financial institution in Western Canada,” said Val Vaillant, president and co-founder of Adroit. “While building our existing client relationships will remain a top priority, we also look forward to extending our services and expertise to the bank’s customers and contacts.”

IE