Morgan Keegan Deal Expected to Close During First Quarter of 2012
- Jan 22, 2012
Regions Financial Corp. has entered into a stock purchase agreement to sell Morgan Keegan & Co. Inc., its Memphis-based investment unit, to Raymond James Financial Inc., for $930 million. The transaction is expected to close during the first quarter, subject to regulatory approvals and customary closing conditions, according to a company spokesperson.
“Our businesses have grown significantly over the past decade as part of the Regions family,” John Carson, CEO of Morgan Keegan stated in a press statement. “As we enter a new era for the firm, we are excited by the opportunity to continue providing outstanding service to our individual and institutional clients as part of Raymond James.”
The deal is expected to have a big impact on the local office real estate market as the two companies currently occupy more than 320,000 square feet of office space in Memphis, according to the Memphis Business Journal. Morgan Keegan has offices in Morgan Keegan Tower on Front Street, where it occupies 242,000 square feet; it also leases 58,000 square feet in Boyle Investment Co.’s Ridgeway Center at 1100 Ridgeway Loop, in East Memphis.
Raymond James’ footprint in the Memphis market includes about 12,000 square feet on the ninth floor of the Crescent Center at Ridgeway Road and Poplar Avenue; and 8,100 square feet at Renaissance Center, an East Memphis office building located on Aaron Brenner Drive.
In other news, the Commercial Appeal reports that the Canadian National Railway (CN) got the green light from the Memphis-Shelby County Port Commission to proceed with its expansion project in Memphis. CN will be able to buy up to 800 acres in Frank C. Pidgeon Industrial Park as agreed with Port of Memphis officials. The plan is to develop the 800 acres to create a new logistics park that could evolve into a $300 million project that would employ around 5,000 people.
Image courtesy of Wikimedia Commons user Hellohowareyoudoing (talk).