BMO Financial Group to Acquire F&C Asset Management plc - Seite 2

The board of F&C intends to recommend unanimously that F&C shareholders vote in favour of the acquisition. Subject to F&C shareholder approval and the satisfaction of all regulatory and other conditions, the acquisition will close after May 1, 2014.

Given BMO's strong capital position, no common equity offering will be required for the transaction. The impact of the acquisition on BMO's Basel III Common Equity Tier 1 ratio is approximately 75 basis points. The combination will further diversify BMO's earnings by adding fee-based income with good opportunities for revenue growth. Cost savings from the acquisition are expected to be modest. The transaction has an internal rate of return to BMO of approximately 15% and is modestly accretive to BMO's earnings per share in the first year, excluding one-time costs and the amortization of intangible assets.

"The acquisition demonstrates BMO's deep commitment to the asset management business. F&C and BMO both take pride in having built distinctive and engaging brands - grounded in a long history of trust - and we share a deeply held conviction for working in the best interests of our clients," said Bill Downe, Chief Executive Officer, BMO Financial Group. "With an established pedigree in fixed income investment and broad equity and property capabilities across its European platform, F&C advances BMO's capabilities by adding scope and scale to our well-established portfolio of wealth management businesses."

"BMO is the oldest bank in Canada and our ties with the U.K. have been present since our founding. And as residents of the City of London and as stewards of the Bank of Montreal's long history, we are keenly aware that, in business, the thing that matters most is the quality of the work we do on behalf of our clients. We move forward today with the same confidence and optimism as when the bank opened its doors on Lombard Street nearly 150 years ago."

Barry McInerney, Co-CEO, BMO Global Asset Management, said, "F&C and BMO share a passion for focusing on our clients' needs. We look forward to welcoming F&C clients and employees to the BMO Global Asset Management family."

"F&C has made significant progress in the last couple of years. We have developed new products, strengthened our distribution channels and reduced our cost base, putting the business in a strong position to move forward," said Richard Wilson, CEO of F&C. "Looking forward, BMO represents a unique opportunity to broaden and accelerate our ambitions. The products, geographic presence and cultures of both organisations are truly complementary and with BMO's commitment to growth, this is clearly a very positive outcome for both our clients and employees. We look forward to joining the BMO organisation."