Ladenburg Thalmann to Acquire Gruntal

Author:: Diane Hess
Publish date:: Apr 5, 2002 3:06 PM EST

Financial services firm

Ladenburg Thalmann

said Friday it would acquire

Gruntal Financial

and its broker dealer affiliates, Gruntal and GMS Group.

Under terms of the deal, Ladenburg would acquire all of Gruntal's outstanding equity interests, offering $20 million in cash for Gruntal's capital plus 5 million shares of Ladenburg's stock.

According to the agreement, Gruntal and GMS will remain separate broker dealers and standalone subsidiaries.

"This strategic transaction brings to Ladenburg an additional 620 brokers, strong research capabilities, and a significant franchise in private client services, institutional equity sales and trading, among other attributes," said Victor Rivas, chief executive officer of Ladenburg, in a statement.

Lately, Ladenburg Thalmann, which trades on the American Stock Exchange, was up 13.6% at 75 cents.