MINNEAPOLIS--(BUSINESS WIRE)--
Ameriprise Financial, Inc. (NYSE: AMP) today announced a
definitive agreement to acquire H&R Block Financial Advisors (HRBFA)
for $315 million in cash from H&R Block. The transaction is expected
to be accretive to earnings per share and return on equity in early
2010.
The more than 900 advisors of HRBFA work in 135 office locations
across the U.S. The advisors will become Ameriprise Financial-branded
employee advisors and will strengthen the company's presence in key
markets, including Florida, Texas and California. The combined company
will have approximately 13,000 total advisors across all its
platforms. The transaction is also expected to add approximately
376,000 client accounts and $30 billion in client assets.
"The acquisition of H&R Block Financial Advisors reinforces our
growth strategy and underscores the strength of our financial
position," said Jim Cracchiolo, Ameriprise Financial Chairman and CEO.
"We are very pleased to add the seasoned and productive distribution
force of HRBFA. We believe the combined employee advisor group will
benefit from the strong Ameriprise Financial brand, broad product
offerings, robust advisor support and strong field leadership."
The transaction is subject to customary regulatory approvals, and
is expected to close in four to six months.
Following completion of the transaction, Ameriprise Financial and
H&R Block will maintain a strategic alliance providing both companies
with opportunities to acquire new clients through mutual referrals.
"This transaction will bring together two strong organizations
with very similar cultures and client value propositions," said Joan
Cohen, president of HRBFA. "As part of the larger Ameriprise Financial
organization, our financial advisors will be well positioned to grow
their business with significantly expanded resources and offer their
clients a wider array of products and services."
HRBFA advisors will receive attractive retention packages as part
of the transaction.
The acquisition, which has been approved by the boards of
directors of Ameriprise Financial and H&R Block, will be funded
through the use of cash on hand. Following completion of the
transaction, the company will remain in a strong liquidity and capital
position and will continue to repurchase shares under the two-year
repurchase authorization that was announced earlier this year.
A majority of anticipated synergies will be realized through cost
savings.
Banc of America Securities LLC acted as financial advisor and
Wachtell, Lipton, Rosen & Katz acted as legal advisor for Ameriprise
Financial. Lazard acted as financial advisor and Sullivan & Cromwell
LLP acted as legal advisor for H&R Block.
About Ameriprise Financial
Ameriprise Financial, Inc. is a diversified financial services
company serving the comprehensive financial planning needs of the mass
affluent and affluent.
For more information, visit ameriprise.com.
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services
provider, having served more than 400 million clients since 1955 and
generating annual revenues of $4.4 billion in fiscal year 2008. H&R
Block provides income tax return preparation and related services and
products via a nationwide network of approximately 13,000
company-owned and franchised offices and through TaxCut(R) online and
software solutions. The company also provides business services
through RSM McGladrey and certain consumer financial services. For
more information visit our Online Press Center at www.hrblock.com.
Source: Ameriprise Financial, Inc.
Contact: Ameriprise Financial
Investor Relations:
Laura Gagnon, 612-671-2080
laura.c.gagnon@ampf.com
or
Media Relations:
Ben Pratt, 612-678-5881
benjamin.j.pratt@ampf.com
or
H&R Block
Investor Relations:
Derek Drysdale, 816-854-4513
derek.drysdale@hrblock.com
or
Media Relations:
Nancy Mays, 816-854-4537
nmays@hrblock.com