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EXHIBIT 99.1
LABRANCHE & CO ANNOUNCES PROPOSED ACQUISITION OF ROBB PECK MCCOOEY FINANCIAL
SERVICES
- Proposed Transaction Would Add 137 NYSE-Listed Companies -
NEW YORK, Oct. 11 /PRNewswire/ -- LaBranche & Co Inc. (NYSE: LAB), parent of one
of the leading specialist firms on the New York Stock Exchange, announced today
that it has executed a letter of intent to acquire Robb Peck McCooey Financial
Services, Inc. Robb Peck McCooey Financial Services owns and operates RPM
Specialist Corporation and Robb Peck McCooey Clearing Corporation. The
consideration for the proposed acquisition will consist of 9.7 million shares of
LaBranche common stock and a number of shares of non-convertible preferred stock
of LaBranche to be based on the net book value of Robb Peck McCooey Financial
Services at the closing of the transaction.
RPM Specialist Corporation is the sixth largest NYSE specialist firm in terms of
listings and seventh largest in trading volume. It acts as the specialist for
137 NYSE-listed companies, of which three are components of the Dow Jones
Industrial Average and 24 are in the S&P 500. The listings include industry
leaders such as Philip Morris, DuPont, Eastman Kodak, Bristol-Myers Squibb,
Wells Fargo, United Parcel Service and Nippon Telephone & Telegraph. In
addition, RPM Specialist Corporation has a 25% interest in a joint specialist
account with R. Adrian & Co., LLC and Freedom Specialist, Inc., a subsidiary of
Tucker Anthony Sutro. The joint trading account is the specialist for 29 listed
companies, including four component stocks of the S&P 500.
Commenting on the transaction, Michael LaBranche, Chairman and Chief Executive
Officer of LaBranche, stated, "The proposed acquisition of Robb Peck McCooey is
consistent with our strategy of leading the consolidation of the specialist
industry and increasing our market share. Upon completion of this transaction,
LaBranche would be the specialist for 534 companies, including ten Dow and 95
S&P 500 stocks. The combined entity would account for approximately 27% of the
dollar volume and number of shares traded on the NYSE. In addition, we intend to
build upon Robb Peck McCooey's successful clearing business using new
technologies to link customers to our markets. We expect this transaction to be
accretive to earnings."
Robert M. Murphy, CEO of RPM Specialist Corporation, Executive Vice President of
Robb Peck McCooey Financial Services, Inc. and a member of the NYSE Board of
Directors, said "Bringing together two leading NYSE specialist firms with
similar corporate cultures and a commitment to excellence will create enhanced
value for our customers and the NYSE. We look forward to working with the
LaBranche team on a very smooth integration of all our businesses."
LaBranche stated that the proposed transaction is subject to a number of
conditions, including satisfactory completion of due diligence, the parties'
execution of a definitive acquisition agreement and the procurement of required
regulatory approvals. There can be no assurance that the proposed transaction
will be completed.
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Founded in 1924, LaBranche is one of the leading specialist firms on the New
York Stock Exchange in terms of capital, number of stocks traded, dollar volume,
and share volume. With approximately 73 seats on the NYSE, the Company is the
specialist for over 395 issues, 7 of which are in the Dow Jones Industrial
Average and 71 of which are in the S&P 500.
Certain statements contained in this release, including without limitation,
statements containing the words "believes", "intends", "expects", "anticipates",
and words of similar import, constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Readers are
cautioned that any such forward-looking statements are not guarantees of future
performance, and since such statements involve risks and uncertainties, the
actual results and performance of LaBranche and the industry may turn out to be
materially different from the results expressed or implied by such
forward-looking statements. Given these uncertainties, readers are cautioned not
to place undue reliance on such forward-looking statements. LaBranche also
disclaims any obligation to update its view of any such risks or uncertainties
or to publicly announce the result of any revisions to the forward-looking
statements made in this release.
SOURCE LaBranche & Co Inc.
