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Macquarie Group To Buy Tristone Capital

(Reuters) – Australia’s Macquarie Group Ltd (MQG.AX) is buying Tristone Capital Global Inc, the Canadian energy investment bank, for C$116 million ($105 million) to expand in oil and gas advisory services, asset deals and equity research.

Under the deal, Macquarie, which has been amassing businesses in Canada, will pay privately held Tristone C$57 million in cash when the deal closes and C$59 million in exchangeable shares over five years, up to a total of four million shares.

Reports of the discussions had surfaced in March. Macquarie had bought Orion Financial Ltd, another Canadian investment house, in 2007 and rebranded it under the Macquarie banner.

The acquisition of Calgary-based Tristone “continues the expansion of our advisory and capital markets activities and other related industries including leading pipeline and utility companies who are an important part of our infrastructure business,” Paul Donnelly, chief executive of Macquarie Capital Markets Canada, said in a statement.

Tristone, established in 2000 by Calgary investment banker George Gosbee, also has offices in London, Houston, Denver and Buenos Aires. It has 170 staff.

Gosbee will chair Macquarie’s Northern Hemisphere energy business, the company said.

After a transition, Tristone will be integrated into Macquarie. Its acquisitions and divestitures division will be called Macquarie Tristone.

Macquarie said most of Tristone’s employees will stay in their current locations and will be joined by some of the buyer’s own staff.

($1=$1.11 Canadian) (Reporting by Jeffrey Jones; editing by Rob Wilson)