The New England holding company extends its reach into the Southeast. Boston Private Financial, an acquisitive wealth management holding company, plans to buy Gibraltar Financial Corporation in a $245 million cash-and-stock transaction. The deal, which will probably close before this year is out, marks Boston Private’s first foray into Florida’s lucrative wealth market.

“Boston Private's strategy is to have a major presence in the most attractive geographic areas, and Gibraltar will join our similar platforms in New England, California, the Pacific Northwest and New York to bring a full range of wealth management services to successful people, their families, and their businesses,” says Boston Private chairman and CEO Timothy Vaill. “Gibraltar's proven ability to develop a diversified business mix, and produce dynamic growth with very attractive profits over a sustained time period were compelling reasons why Boston Private approached this blue-chip firm.”

Steve Hayworth, president and CEO of Gibraltar, thinks the match with Boston Private is good strategic fit. “When it came time to broaden our strategic reach and participate on a national scale, while at the same time continuing our independent operations, my colleagues and I knew that Boston Private would be the right partner for us.” Hayworth will stay on as Gibraltar’s top manager.

Vaill acknowledges that Boston Private is paying dearly for Gibraltar, which has about $970 million in total assets. But he reckons that’s simply the cost of doing business in Florida, one of the fastest-growing wealth markets in the U.S. “We believe this transaction is attractive for many reasons,” he says. “With the prospects for continued growth in the Florida market, the opportunity to partner with one of the most attractive wealth management players in the region made this an easy decision for us.” The deal should be “accretive within 12 to18 months” of its close, he adds.

After California and Texas, Florida is the fastest growing state in the country, both on a percentage and aggregate basis. Miami-Dade and Broward counties, where Gibraltar does much of its business, are Florida’s most populous counties. The median household income in Coral Gables, where Gibraltar is headquartered, is 84% higher than the national median. In addition to Coral Gables, Gibraltar has offices in Fort Lauderdale, Key Largo, Miami and South Miami.

News of the Gibraltar acquisition comes about six months after Boston Private said it would buy most of New York-based KLS Professional Advisors Group for $30 million – and word of that deal came before the ink had time to dry on its $33.1 million acquisition of Encino, Calif.-based Encino State Bank, now part of Boston Private's Burbank, Calif.-based First State Bank of California.

In addition to First State, Boston Private owns wealth advisors Boston Private Bank & Trust, RINET of Boston, Borel Private Bank & Trust of San Mateo and Palo Alto, Calif., and Bingham, Osborn & Scarborough of San Francisco. It has a minority stake in Coldstream Capital Management of Bellevue, Wash.

Boston Private also owns asset managers Dalton, Greiner, Hartman, Maher & Co. of Boston, Boston Private Value Investors, Westfield Capital Management of Boston and Sand Hill Advisors of San Francisco. –FWR