Canadian Imperial Bank of Commerce (CM) has agreed to buy MFS McLean Budden's private-wealth business.
The deal "aligns with CIBC Wealth Management's strategic priority to strengthen relationships with high-net-worth clients and enhance distribution capabilities while delivering attractive returns," Victor Dodig, a senior executive vice president at CIBC and group head of wealth management, said in a news release Tuesday.
MFS McLean's private-wealth business manages roughly $1.4 billion of assets for affluent individuals and families, endowments and foundations. MFS McLean has offices in Toronto, Montreal and Vancouver.
The financial terms of the deal, which is expected to close in the fourth quarter, were not disclosed.
CIBC has signaled that it would take a low-risk approach to expansion, especially in the U.S., by acquiring niche businesses rather than whole banks. In August 2011, CIBC completed its purchase of a 41% stake in American Century Investments, a Kansas City, Mo., asset management firm, for $848 million.
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