Birmingham, Ala.-based Sterne Agee Group Inc., a financial holding company, plans to acquire one of Richmond’s oldest brokerage firms.
Sterne Agee said it has entered into a letter of intent to acquire Anderson & Strudwick Inc., which was founded in 1948. The Richmond firm has described itself as one of the few remaining independent investment firms in the country.
Terms of the deal were not released.
The Birmingham News reported today that Sterne Agee has annual revenues of about $350 million, making it one of the largest brokerages not based on Wall Street. The company has bought or offered to buy four other companies in the past year or so, the newspaper said.
Sterne Agee plans to use the acquisition to expand its wealth management business in the eastern U.S. through Anderson & Strudwick’s 18 offices. The Richmond brokerage’s offices are in Virginia, North Carolina, South Carolina, Florida, Tennessee, Illinois and Massachusetts.
Sterne Agee’s companies provide investment banking, research, securities clearing, asset management, trust, and institutional and retail securities brokerage services.
Damon Joyner, the president and CEO of Anderson & Strudwick, will become a senior managing director at Sterne Agee. “Our team is very excited to join a largely employee-owned firm such as Sterne Agee and believe that Sterne Agee is the right fit for our clients and employees,” Joyner said in a statement.
Anderson & Strudwick, started by Edward C. Anderson and Edmund Strudwick, joined the New York Stock Exchange in 1955. It began opening additional offices in the 1970s and became an employee-owned firm in 1998. Last year, the firm had more than 150 employees, according to its website.
The proposed acquisition is subject to customary due diligence and regulatory approvals. Sterne Agee expects the acquisition to be completed in the next 90 days.
Sterne Agee, founded in 1901, has nearly 1,200 employees in 45 offices in 23 states.
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