This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

H&R Block Sells Financial Advisors Unit

H&R Block (HRB - Get Report) is selling its financial advisors business to Ameriprise Financial (AMP - Get Report) for $315 million in cash.

The deal, expected to close in four to six months, is subject to certain adjustments and advisor retention at the time of closing, H&R Block says. It expects the deal to generate cash proceeds of $340 million. H&R Block currently has 900 advisors that oversee 376,000 clients and $30 billion of assets under management. Ameriprise Financial, formerly a unit of American Express (AXP - Get Report), was spun off from its parent company in 2005.

The sale agreement is the latest retrenchment for the Kansas City, Mo.-based tax preparation company as it focuses on its bread and butter business.

Earlier this year, after much fanfare, H&R Block finally sold the servicing business of its subprime mortgage lender, Option One to Wilbur Ross. The company was originally supposed to sell the entire business to Cerberus Capital, but as market conditions worsened in the credit and housing markets, the deal fell through.

"The securities brokerage business increasingly demands size and scale, and [H&R Block Financial Advisors] simply did not have the size to be able to compete at the highest levels in the future," said H&R Block Chairman Richard Breeden. "This transaction will give the HRBFA financial advisors a dynamic parent company with a growing platform so that they can compete effectively and efficiently. At the same time, the transaction will benefit Block shareholders, as we reduce risk in a non-core area and enhance our returns on capital. When this transaction closes, we will have completed the strategic realignment that we promised shareholders, and our efforts will be tightly focused on our tax services business that serves more than 23 million clients."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMP $95.90 -2.27%
AXP $65.43 -0.62%
HRB $20.24 -3.66%
AAPL $93.74 -1.15%
FB $117.58 0.73%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs