TORONTO, September 8, 2008 - Industrial
Alliance Insurance and Financial Services Inc. ("IA") is pleased to
announce that it has entered into an agreement with Sarbit Asset
Management Inc. ("SAMI") under which IA will offer to acquire all
of the issued and outstanding shares of SAMI. IA has also entered
into lock-up agreements with shareholders representing over 75% of
the issued and outstanding shares of SAMI.
SAMI is a privately-owned mutual fund manager founded in 2005 by
Larry Sarbit, a money manager with over 28 years' experience. Mr.
Sarbit is recognized for his disciplined, value-oriented investment
philosophy focussed primarily on U.S. equities.
The acquisition of SAMI provides IA with approximately $130
million in assets under management, which will be integrated with
IA Clarington Investments Inc. ("IA Clarington"), a subsidiary of
IA. Mr. Sarbit and his investment team will continue providing
investment advice to SAMI's U.S. equity funds after the transaction
is completed, and the remainder of the Sarbit mutual funds will be
managed by an affiliate of IA Clarington.
"Larry Sarbit is well known to financial advisors and investors in
Canada," said David Scandiffio, President of IA Clarington. "He has
managed large mutual funds with assets in excess of $2 billion, as
well as smaller funds, such as the $85 million Sarbit U.S. Equity
Trust, and done so through a full range of market cycles. We are
pleased that Mr. Sarbit has agreed to continue providing his unique
style of investment advice to SAMI's U.S. equity funds after
completion of the transaction through an ongoing sub-advisory
relationship."
"Investors in Sarbit mutual funds will enjoy the benefits of being
part of IA Clarington, including its increased size and scale of
operations, a broad range of investment options and a strong
commitment to investment performance and customer service," said
Mr. Sarbit, President and CEO of SAMI. "The decision to sell the
company I founded was not an easy one, but I am happy to have found
a buyer such as IA that is firmly committed to meeting the needs of
investors and financial advisors."
The transaction adds to IA's string of wealth management
acquisitions and marks the 14th transaction since the early 2000s.
Subject to requisite shareholder and regulatory notifications and
approval, the transaction is expected to close on or before October
31, 2008.
About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial
Services Inc. is a life and health insurance company that offers a
wide range of life and health insurance products, savings and
retirement plans, RRSPs, mutual and segregated funds, securities,
auto and home insurance, mortgage loans and other financial
products and services. The fourth largest life and health insurance
company in Canada, Industrial Alliance is at the head of a large
financial group, which has operations across Canada, as well as in
the Western United States. Industrial Alliance contributes to the
financial wellbeing of over 3 million Canadians, employs more than
3,300 people and manages and administers over $51 billion in
assets. Industrial Alliance stock is listed on the Toronto Stock
Exchange under the ticker symbol IAG. Industrial Alliance is among
the 100 largest public companies in Canada.
About IA Clarington
IA Clarington managed approximately $7.5 billion in mutual fund
and closed-end fund assets as at July 31, 2008. IA Clarington
maintains offices in Toronto, Calgary, Vancouver, Montreal and
Quebec City.
About Sarbit Asset Management
Sarbit Asset Management Inc. was founded in 2005 and is an
investment management firm providing investment advisory and
related services. Sarbit distributes its services through a
diversified network of third party financial advisors who look for
a rational, common sense and business-like approach to
investing.