The Edelman Financial Center Agrees to Acquisition by Sanders Morris Harris Group
The Edelman Financial Center, the largest and most prominent financial planning firm in the Washington, DC region, has agreed to be acquired by Sanders Morris Harris Group Inc. (NASDAQ: SMHG).
Fairfax, VA (PRWEB) May 11, 2005 -- The Edelman Financial Center, the largest
and most prominent financial planning firm in the Washington, DC region, has
agreed to be acquired by Sanders Morris Harris Group Inc. (NASDAQ:
SMHG).
SMHG, a leading diversified financial services holding company
that was ranked in 2004 by Fortune as the nation’s 14th fastest-growing public
company, has purchased a 51% interest in the business of EFS and will acquire
the remainder over five years. EFC Founder and Chairman Ric Edelman has entered
into a long-term employment agreement with the business and will continue to
operate the company. Edelman also will become one of SMHG’s significant
shareholders as the balance of the business is acquired by SMHG.
“Serving
the needs of our clients is our top priority,” said Edelman, “and joining the
highly qualified professionals of Sanders Morris Harris Group will help us to
maintain that ability for years to come.”
Through its subsidiary, Edelman
Financial Services, The Edelman Financial Center, based in Fairfax, Virginia,
provides financial planning services with respect to more than $2.6 billion for
individuals and families. Ric Edelman is a #1 best-selling author who has
written five books on personal finance, including the classic The Truth About
Money. His books have been translated into six languages and collectively have
sold more than 1 million copies. Edelman hosts weekly financial planning
programs on WMAL Radio (Saturday 10am-11:45am) and Newschannel 8 (Monday 8:30pm)
and is frequently quoted in the media. The firm has won more than 60 awards; in
2004 alone, Registered Rep Magazine listed Ric Edelman as one of “America’s Top
50 Advisors,” Research Magazine ranked him the #1 advisor in the nation for his
focus on the individual client and inducted Edelman into its Financial Advisor
Hall of Fame, and Bloomberg Wealth Manager ranked EFS the largest independent
financial planning and investment management firm in the nation based on number
of clients.
Acquiring The Edelman Financial Center furthers SMHG’s
position in the mass affluent market and brings SMHG’s total assets under
management to $10 billion. SMHG expects the transaction to be accretive to its
current year earnings. Edelman’s 2004 revenues were $17.7 million and its pretax
net income $3.2 million adjusting for one-time expenses. The details of the
Edelman transaction are included in an 8-K filing available on the Company’s
website.
“Adding The Edelman Financial Center to our asset management and
financial planning group fits our strategy of providing our clients with the
full spectrum of services and investment opportunities. We expect to leverage
the financial planning services provided by The Edelman Financial Center across
our other asset management businesses,” said Robert E. Garrison II, President of
Sanders Morris Harris Group.
George L. Ball, Chairman of Sanders Morris
Harris Group, commented, “We are delighted that Ric Edelman and his team of high
caliber professionals have elected to join SMHG. We look forward to assisting
them as they help their clients build wealth and financial
security.”
Sanders Morris Harris Group is a diversified financial
services holding company based in Houston, Texas that provides investment
banking services and manages over $10 billion in client assets. Its operating
entities are Sanders Morris Harris, Charlotte Capital, Kissinger Financial
Center, Pinnacle Trust Co., Salient Partners, SMH Capital Advisors and Select
Sports Group.
Additional information is available at www.smhgroup.com.
Additional information regarding Ric
Edelman and The Edelman Financial Center is available at www.RicEdelman.com.
Putnam Lovell NBF Securities acted as financial advisor to The Edelman
Financial Center, and Simpson Thacher & Bartlett LLP acted as transaction
counsel.
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Source : http://www.prweb.com/releases/2005/5/prweb238619.htm