Commerce Bank has finalized the acquisition of L.J. Hart & Co., a Chesterfield, Missouri-based municipal bond underwriter and advisor, in a merger they said will boost both firms' client base and product capabilities.
Through Commerce Brokerage Services, Inc. and Commerce Bank Capital Markets Group, Commerce provides fixed income trading, asset liability management, safekeeping and bond accounting to thousands of institutional clients.
Founded in 1991, L.J. Hart develops financing solutions for local governments, including school districts, counties, special districts, not-for-profit corporations, and other entities, and is a leading negotiated underwriter of Missouri public education issues.
The financial terms of the deal were not disclosed, but heads of the firms said the acquisition is a win-win for both.
Commerce will leverage L.J. Hart's broad municipal issuer client base and boost its sales efforts by offering proprietary municipal products, the firm said in a press release.
"Their capabilities will enhance our offering to capital market customers and bolster our institutional fixed-income business," Bob Holmes, chairman and chief executive officer of Commerce Bank, said in a release.
L.J. Hart will become a wholly-owned subsidiary of Commerce, allowing it to expand its offerings and underwriting opportunities throughout Commerce's network of state and local government.
"L.J. Hart and Commerce are like-minded companies that are aligned on culture, are relationship-focused and provide our clients with high levels of service," Holmes said.
Under the terms of the acquisition, employees of L.J. Hart — including the company's founding chief executive officer and principal, Larry J. Hart, as well as all the current staff members — and its office location in Chesterfield, will be retained.
"With the support and resources of an institution like Commerce and our existing relationships with issuers, we are well-positioned to accelerate our service to customers across the region," Hart said in a release.
L.J. Hart has advised more than 300 Missouri public school districts and nearly a quarter of the 114 Missouri county governments, while also underwriting more than 2,600 municipal financings as senior manager with a par value over $7.3 billion, according to Refinitiv Financial Solutions.
Commerce Bank is a subsidiary of Commerce Bancshares and has more than 155 years of financial service experience. It currently operates full-service banking facilities across the Midwest and some commercial offices in the Midwest and Southwest regions.
