Stifel Financial (SF) Closes B&F Capital Markets Acquisition

Recently, Stifel Financial Corporation (NYSE:SF) completed the acquisition of B&F Capital Markets, Inc., headquartered in Cleveland, OH. Financial terms of the deal remain undisclosed.

B&F enters into strategic partnerships with banks (asset size varying between $500 million and $30 billion) to hedge interest-rate risk for the bank’s commercial borrowers. Thus, being a provider of extensive interest-rate swap, B&F develops related derivative programs to meet its objective.

Ronald J. Kruszewski, chairman and CEO of Stifel said, “The combination of B&F Capital Markets’ expertise in interest rate risk management for banks’ commercial borrowers and Stifel’s broad network of banking clients will further enhance our industry leading financial services practice.”

Stifel’s acquisitions are part of its vision to become a premier wealth management and investment banking firm. Also, it announced the acquisition of certain assets of George K. Baum & Company, this year. However, the deal does not include George K. Baum Capital Advisors or Baum Capital Partners.

Previously, this July, Stifel completed the buyout of Mooreland Partners, an independent M&A and private capital advisory firm that provides services to the global technology industry.

Stifel’s inorganic growth activities reflect its solid balance-sheet position. Also, these efforts will help boost its operating efficiency. The bank’s diversified revenue sources will likely support its financials. Furthermore, it will benefit from improving conditions in the domestic economy.

Shares of Stifel have gained 26% compared with the industry’s rise of 3.7%, year to date. The stock currently carries a Zacks Rank #4 (Sell).




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