Sprott Asset Management on Monday announced it would acquire precious metals asset manager Central Fund of Canada for C$120 million ($96.2 million) in cash and stock.
The C$4.3 billion in Central Fund of Canada assets under management will be added to Sprott's AUM, raising it to C$11.5 billion, according to a news release from Sprott Asset Management.
Central Fund invests in gold and silver bullion, while Sprott invests in various precious metals as mining exchange-traded funds, and private equity and debt strategies. The fund will be renamed the Sprott Physical Gold and Silver Trust, said Glen Williams, Sprott spokesman.
The deal is expected to close in the first quarter of 2018.
The acquisition announcement comes two months after parent company Sprott Inc. closed on the sale of its C$3 billion mutual fund to a management group led by John Wilson, Sprott Asset Management CEO, and James Fox, SAM president, for C$46 million. That business was renamed Ninepoint Partners on Sept. 26.