Sun Life Financial Inc. has signed a deal to buy the remaining minority stake in investment firm McLean Budden Ltd. that it did not already own for $144-million.
As part of the deal for the 32.4 per cent stake, Sun Life could also pay more if certain performance targets are reached.
The deal beefs up the Canadian insurance company’s money management business and also expands Toronto-based McLean Budden’s offerings, the companies said in a release.
Sun Life has held a majority stake in McLean Budden since 1997.
McLean Budden has offices in Toronto, Montreal and Vancouver and manages $32-billion in assets for pension, foundation and endowment, private wealth and mutual fund clients.
Sun Life says McLean Budden will become a wholly owned subsidiary and transfer to Sun Life’s MFS Investment Management unit.
Martin Beaulieu, currently vice-chairman and head of global distribution at MFS, will become chairman and chief executive of the new subsidiary.
Roger Beauchemin, currently president and CEO of McLean Budden, will continue in his role until closing and work on the integration.