News
September 09, 2008
ST. PAUL, Minn., Sept. 10 / PRNewswire / -- Securian Financial Group, Inc. (SFG) today announced plans to purchase Capital Financial Group, Inc. (CFG), and its broker-dealer affiliate, H. Beck, Inc. of Rockville, MD. The companies signed a definitive agreement outlining details of the purchase. The transaction is scheduled to close by year end, subject to regulatory approval.
CFG's senior management team will remain in place and the firm will continue to operate independently in Maryland under Securian's ownership. No layoffs are expected at either firm.
"This business combination is beneficial to all parties involved," said Randy Wallake, president, Securian Financial Group. "The biggest winners are the financial advisors and the clients they serve."
"With Securian's financial strength, CFG will be able to better serve its growing field force," said Eric Meyers, president and CEO, Capital Financial Group. "Also, because Securian is not publicly-owned and has retained a private, mutual governance structure, it is able to take a thoughtful, long-term approach when making strategic decisions. This is the approach we take at CFG."
Meyers says CFG's decision to open a Southern California service office in 2009 for CFG advisors is an example of Securian's financial strength providing opportunities for CFG to grow and better serve its advisors. Both firms work to retain advisors -- one of the biggest challenges facing broker-dealers -- by developing "highly personal" relationships with them.
Under the agreement, CFG and Securian Financial Services (SFS), Securian's broker-dealer will benefit from increased efficiency and product offerings. Each firm is enjoying strong growth: CFG's three-year compound annual growth rate is 17 percent and SFS's is 27 percent. The acquisition will significantly expand SFG's distribution to nearly 2,000 advisors -- approximately 750 with CFG and 1,220 with SFS.
"CFG and Securian will draw upon each other's strengths, enabling both to grow, thrive, and provide superior service to their advisors and clients," said George Connolly, president, Securian Financial Services.
CFG/H. Beck serves the needs of individuals, trusts, estates and businesses. CFG/H.Beck, a member of FINRA/SIPC, offers securities and investment advisory services and is licensed in all 50 states.
Securian Financial Services, a registered investment adviser and member of FINRA/SIPC, is a subsidiary of Securian Financial Group. Securian Financial Group provides financial security for individuals and businesses in the form of insurance, retirement plans and investments. Securian Financial Group has $690 billion of life insurance in force, $30 billion in assets under management as of June 30, 2008, and a work force of 3,500 employees nationwide. SFG serves more than 9,000,000 individuals in the U.S.
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