Stifel Financial Corp., the parent company of Stifel, Nicolaus & Co., acquired public finance banking boutique De La Rosa & Co. The deal may catapult Stifel into a top-10 underwriting position in municipal bonds.
The combined firms would rank as the top underwriter in K-12, tax increment, economic development and COP & lease revenue bonds, the firms said in a press release Thursday.
"The addition of the De La Rosa team will further enhance our capabilities in California, which began with the acquisition of Stone & Youngberg in 2011," Ronald Kruszewski, chief executive officer of Stifel Financial Corp., said in the announcement. "It is an impressive group, with an excellent reputation, in a market we are committed to serving."
Stifel Nicolaus was senior manager to $8.75 billion by par amount in 2012, while De La Rosa accounted for $2.66 billion of deals. Together, the underwriting businesses would take a Top-10 manager spot, based upon volume and number of issues.
"We have known, competed with, and respected the individuals who make up the Stifel team for years," Ed De La Rosa, president and founder of De La Rosa Securities, said in the announcement. "My partners and I each carefully evaluated this opportunity and believe that combining forces will allow us to better serve our clients throughout the Golden State."
