BMO Acquires Burgundy Asset Management for $625 Million

In a strategic move to strengthen its wealth management business, BMO Financial Group has announced the acquisition of Burgundy Asset Management Ltd. for $625 million in shares. The transaction, which is expected to close by the end of 2025, will see Burgundy, a leading Toronto-based private investment firm, join BMO’s wealth management unit.

Expanding Wealth Management Reach

BMO’s acquisition of Burgundy, which manages $27 billion in assets for high-net-worth clients, will enhance the bank’s reach in the Canadian wealth management space. Burgundy, founded in 1990, caters to private individuals, family offices, and foundations, providing discretionary investment management services. As part of the deal, Burgundy will continue to operate under the leadership of its current CEO, Robert Sankey, and co-founders Tony Arrell and Richard Rooney, who will remain with the firm.

Deland Kamanga, BMO’s Group Head of Wealth Management, expressed confidence in the acquisition, saying, “Burgundy Asset Management is one of Canada’s most respected independent investment managers, known for its high-caliber team and rigorous investment process. This acquisition builds on BMO’s client-focused heritage and expands our wealth advice offering.”

Ensuring a Smooth Transition

BMO included a $125 million retention bonus to keep Burgundy’s clients and advisers onboard. The bonus pays out 18 months after closing if Burgundy maintains a set level of assets under management. This structure helps retain clients and maintain service continuity. BMO will integrate Burgundy’s 150 employees in Toronto, Montreal, and Vancouver into its wealth-management division. This move strengthens the bank’s expertise in serving affluent clients.

Financial Details and Strategic Impact

BMO paid a price-to-AUM multiple of 2.3% for Burgundy. Analysts say this multiple is fair. For context, Royal Bank of Canada paid $1.36 billion for Phillips, Hager & North Investment Management Ltd. Toronto-Dominion Bank paid $792 million for Greystone Capital Management Inc.

The deal should boost BMO’s wealth-management earnings per share by about 0.5% over time. It will lower the bank’s common equity tier 1 ratio by 10–15 basis points. That dip still keeps the ratio well above regulatory requirements.

Looking Ahead

This acquisition aligns with BMO’s broader strategy of bolstering its wealth management platform, which has become a crucial source of predictable earnings. Paul Holden, a CIBC analyst, noted that the deal should positively impact BMO’s wealth management sector, though the true success of the acquisition will depend on how well BMO retains Burgundy’s clients and assets.

As part of the ongoing integration, Burgundy’s financial advisers, including KMS Capital, Origin Merchant Partners, and PJT Partners, are advising on the transaction, while Torys LLP serves as legal counsel. BMO’s own investment team and Osler, Hoskin & Harcourt LLP are representing the bank in the deal.

How do you think BMO’s acquisition of Burgundy will impact the Canadian wealth management landscape? Will it lead to more consolidation in the industry?

More…

• https://www.bnnbloomberg.ca/business/company-news/2025/06/19/bmo-acquires-independent-asset-manager-burgundy-for-625-million
• https://www.theglobeandmail.com/business/article-bank-of-montreal-buying-burgundy-asset-management-for-625-million
• https://newsroom.bmo.com/2025-06-19-BMO-to-Acquire-Burgundy-Asset-Management