SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: April 26, 1999
RAYMOND JAMES FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
FLORIDA 1-9109
59-1517485
(State of incorporation) (Commission
(IRS Employer Identification
File Number) Number)
880 Carillon Parkway, St. Petersburg, Florida
33716
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code
(727) 573-3800
Item 5. Other Events
On April 14, 1999, Raymond James Financial, Inc.,
("RJF"), entered into an Agreement (the "Agreement") with
BANK ONE CORPORATION ("Bank One") to acquire Roney & Co.
("Roney"), a wholly-owned broker-dealer subsidiary of Bank
One. Pursuant to the terms of the Agreement, RJF will pay $
80 million to acquire Roney. The acquisition, which is
subject to regulatory approvals, is expected to close in the
June quarter of 1999.
Bank One owned Roney by virtue of it's acquisition in
May 1998 of First Chicago NBD Corporation, who had purchased
Roney only a month earlier. A portion of the Roney purchase
price was deferred at that time and subjected to a three
year employment requirement. In addition, a retention
formula was established for key producers, also vesting
ratably over a three year period. As part of its
acquisition price for Roney, RJF will assume these
obligations and thus have a total of approximately $28
million in deferred amounts in place through May 2001.
Due to the amortization of goodwill and the expensing
of retention amounts, the acquisition of Roney is
anticipated to have a neutral to slightly dilutive impact on
RJF's earnings per share for the first two years.
Please see the attached press release dated April 14,
1999.
Signatures
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
RAYMOND JAMES FINANCIAL, INC.
(Registrant)
Date: April 26,1999
____/s/ Jeffrey P. Julien_______
Jeffrey P. Julien
Vice President - Finance
and Chief Financial
Officer
Release No. 499-1
April 14, 1999 FOR IMMEDIATE RELEASE
RAYMOND JAMES FINANCIAL
ANNOUNCES AGREEMENT TO ACQUIRE
RONEY & CO. FROM BANK ONE
ST. PETERSBURG, Fla. - Raymond James Financial today
announced it has reached an agreement to acquire Roney & Co.
from BANK ONE CORPORATION for $80 million.
Roney's operations will become a division of Raymond
James Financial's Raymond James & Associates wholly-owned
New York Stock Exchange member subsidiary.
Roney & Co.'s 28 branch offices in Michigan, Indiana
and Ohio will geographically complement Raymond James &
Associates' retail brokerage network, which currently
includes 56 domestic retail offices, according to Thomas A.
James, chairman of Raymond James Financial, and will provide
a springboard for additional expansion in the Midwest.
Together, the firms will have 900 Financial Advisors.
The closing is expected prior to June 30, pending
regulatory agreement.
William C. Roney III, chairman of Roney & Co., will
continue in a management role at Raymond James & Associates,
as well as serve on its board, and will lead the Roney & Co.
transition team in Detroit as president of the division.
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Page 2 RAYMOND JAMES
FINANCIAL
Rel. No. 499-1
"We are very pleased to be able to include Roney & Co.
within Raymond James & Associates," James said. "I have
known Bill and his company for a long time and I have great
respect for them.
"Raymond James & Associates had already targeted the
Midwest as an expansion opportunity for its retail
distribution and investment banking services," James
continued. "We recently opened offices in Des Moines and
Chicago. This acquisition will accelerate our entry. We are
gratified to have the opportunity to add such a premier
group to our growing brokerage network.
"Both Roney and Raymond James have similar corporate
cultures," he continued. "Equally important, both firms use
the same operating system, allowing Raymond James to
establish a
second operations site in Detroit. The two operations
locations
will provide each other with backup processing
capabilities."
"Raymond James & Associates was identified as the most
compatible partner in terms of a similar culture and client-
centered focus," explained Roney. "Raymond James & Associates is
a highly regarded firm within our industry and we believe that
this is a `best of both worlds' situation with the critical mass
of a large company and the one-on-one personal service that has
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Page 3 RAYMOND JAMES
FINANCIAL
Rel. No. 499-1
long distinguished Roney & Co."
At this point, according to James and Roney, they have
made no determination about any departments in Roney & Co.'s
Detroit headquarters, but it is likely that Capital Markets,
as well as Operations, will be represented in Detroit,
possibly leading to additional hiring. Every effort will be
made to retain as many Roney associates as possible.
Additionally, Raymond James & Associates has more than 125
job openings within its corporate headquarters as a result
of its continuing growth.
"One of the reasons that this is a good fit for Roney &
Co.," according to Roney, "is, because we both use the same
operating system, the technical integration for our clients and
financial consultants should be facilitated.
"As for our branches," Roney added, "we expect a positive
effect due to the expanded array of investment alternatives
and
enhanced recruiting opportunities that Raymond James &
Associates' national reputation brings to our firm."
"After a strategic review of our investment management
business, we determined that Roney & Co., given its
concentrated regional focus, could achieve its growth
potential more effectively outside Bank One," according to
David J. Kundert,
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Page 4 RAYMOND JAMES
FINANCIAL
Rel. No. 499-1
chairman and CEO of Banc One Investment Management Group,
the investment management arm of BANK ONE CORPORATION.
"Within our fast-growing national investment business, we
are directing our focus on growing the $123 billion in
assets we manage for individual and institutional clients,
which includes our proprietary $56 billion One Group Mutual
Funds."
The Roney name will remain for the time being, although
it will operate as a division of Raymond James & Associates.
"With the continuing consolidation within our industry,
unified branding has become increasingly important to
reinforce a shared identity," continued a statement from
Roney and James. "Consequently, we have made a joint
decision to adopt the more established, national recognition
of Raymond James & Associates over time."
That will allow Roney & Co. to better capitalize on the
Raymond James national branding campaign, which is centered
on
its 1998 naming of Raymond James Stadium, Tampa's new
football facility used by the Tampa Bay Buccaneers,
professional soccer's Tampa Bay Mutiny and University of
South Florida's football team, the Bulls.
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Page 5 RAYMOND JAMES
FINANCIAL
Rel. No. 499-1
Concerning the consolidation, James stressed that "we have
not yet finalized the timing. Reflecting the similar cultures,
values and operating systems, we anticipate a relatively smooth
integration."
Roney & Co. will add its $112.6 million in revenues to
Raymond James Financial's fiscal 1998 $1.1 billion.
Raymond James Financial (NYSE - RJF) provides financial
services to individuals, corporations and municipalities
through its two wholly-owned investment firms, Raymond James
& Associates and Raymond James Financial Services, which
have more than 3,300 Financial Advisors in 1,400 locations
throughout the United States and overseas, as well as
through its asset management subsidiaries which currently
manage in excess of $12 billion.
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For additional information,
please contact Lawrence Silver at 727-573-3800.
