On August 7, 2019, Sprott Inc. announced it had agreed to acquire the gold strategy asset management business of Seward & Kissel client Tocqueville Asset Management L.P.
Under the terms of the transaction, Sprott Inc. (“Sprott”) will acquire Tocqueville Asset Management L.P.’s (“Tocqueville”) gold strategy asset management business and team for a total consideration of up to $50 million, including closing payments of $10 million in cash and Sprott common shares valued at $5 million. Subject to financial performance conditions for the two years following the closing, Tocqueville will be eligible to receive another $30 million in cash and additional Sprott common shares valued at $5 million. Tocqueville’s entire gold investment team, including Senior Portfolio Manager John Hathaway and Portfolio Managers Douglas Groh and Ryan McIntyre, will be joining Sprott post-transaction. The transaction will add approximately $1.9 billion to Sprott’s assets under management and is subject to security holder approval for certain acquired strategies and regulatory and stock exchange approvals for the issuance of shares to Tocqueville. The transaction is also subject to customary closing conditions and is expected to close in January 2020. Further terms of the deal were not disclosed. A Seward & Kissel team led by partners Jim Abbott and Robert Van Grover and associates Dora Pulido, Jaime Ma, and David Nangle represented Tocqueville in connection with the transaction.
Sprott (TSX:SII) is a Toronto-based alternative asset management company with investment strategies that include exchange listed products, lending, managed equities, and brokerage.
Tocqueville is an asset management firm that manages institutional and private client accounts and provides various investment management and advisory services to its clients.
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