SunTrust to Pay $150M For Equitable Brokerage

SunTrust Banks Inc. said Friday it would acquire Equitable Securities Corp., a Nashville-based investment banking and securities brokerage firm.

A SunTrust executive valued the deal at about $150 million, or 5.6 times Equitable's book value. SunTrust's up-front payment to Equitable is valued at $89 million, he said.

The deal will combine Equitable Securities' investment banking and equity capabilities with the debt capital markets experience of SunTrust Capital Markets Inc., the bank's section 20 subsidiary. A new subsidiary, named SunTrust Equitable Securities, will be formed.

R. Charles Shufeldt, president and chief executive officer of SunTrust Capital Markets, said the bank expects to receive Federal Reserve authorization to underwrite corporate debt and equity before yearend.

Atlanta-based SunTrust is focused on a corporate client base of middle- market southeastern companies with $50 million to $2 billion in annual sales, said Mr. Shufeldt.

Equitable, founded in 1930, has offices in Nashville, Atlanta, and Houston and concentrates on health care, business and information services, restaurants, and entertainment.

"I think it would be impossible for us to find an investment bank that was a better fit for SunTrust," said Mr. Shufeldt, who will become a vice chairman of the new unit. "Already there's quite a bit of overlap and then there's lots of opportunity to build off of their franchise and for them to build off of ours." u

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