Are we dreaming? Schorsch and RCAP acquire JP Turner
You are not dreaming. Announced this morning, RCS Capital Corporation (RCAP) and Nicholas Schorsch have announced its intent to purchase J.P. Turner & Company Capital Management, LLC (JP Turner), an independent broker dealer (IBD) with over 400 registered representatives.
JP Turner, once the acquisition is complete, will become part of the RCAP independent financial advisor network which, once all is said and done, will be a collection of five IBD purchases totaling over 9,000 registered representatives.
“We are extremely pleased to have the opportunity to partner with RCAP, while maintaining our current operating structure,” commented Timothy W. McAfee, Co-Founder of J.P. Turner. “We are excited about the opportunities this relationship will provide our representatives, their clients and the firm’s employees.”
William L. Mello, Co-Founder of J.P. Turner, commented, “We could not be more excited to join the RCAP family of companies. RCAP’s distinguished management team, clear commitment to the independent broker-dealer channel, and dedication to, above all else, putting investors first, make this a great day for everyone at J.P. Turner.”
Just yesterday, RCAP announced its intent to acquire Cetera Financial Group, Inc. for $1.15 billion. Cetera is another IBD network totaling over 6,500 registered representatives.
RCAP will pay total considerations of $27 million for the sellers’ respective membership interests in the JPT Entities (JP Turner), 70% in cash and 30% in Class A Common Stock with a par value $0.001 per share. Payments are structured in that 60% will be payable at the closing and 40% on the first anniversary of the closing date.
Nicholas S. Schorsch, Executive Chairman of RCAP, commented, “The acquisition of J.P. Turner, one of the finest independent retail broker-dealers in the nation, represents another important step in realizing RCAP’s strategic vision to become the leading financial services firm focused on the direct investment sector. This transaction further expands our network of quality broker-dealers and financial advisors and provides enhanced value for our stockholders. We believe that J.P. Turner both complements our existing wholesale distribution brokerage business and enhances the ability of RCAP to successfully meet the needs of our retail investors.”
The transaction is expected to close sometime in 2014.