Just over a month after BMO’s $625M acquisition of Burgundy, we’ve got more wealth management consolidation - this time with iA Financial’s ~$600M takeout of RF Capital group (Richardson Wealth), which adds $40B of AUA.

The strategic rationale is clear, as the deal positions IAG as the leading independent wealth platform in the country and grows its geographic footprint outside of Ontario and Quebec by nearly 50%.

With Richardson advisors managing ~$210M per head (roughly 4x iA advisors), it also strengthens iA’s presence in the high net worth segment - and does so at a reasonable price, at 1.5% of AUA or 11.3x EBITDA before synergies.

Post-synergies management is pointing to 6.7x, which would translate to a ~$36M uplift in EBITDA - half of which will depend on IAG’s ability to recruit new advisors.

Who could be next? Wellington-Altus launched a process late last year to sell up to 30% of the company in a secondary transaction. Clearly, they’re looking for a liquidity event - and at ~$40B of AUA they could be in the strike zone…

First National (FN), one of Canada’s largest non-bank mortgage lenders, is getting taken out in a $2.9B deal led by Birch Hill Equity Partners and Brookfield after a lengthy strategic review process.

The review attracted multiple bids and for good reason, given FN’s capital-light model that generates income across the mortgage origination, servicing, and securitization value chain. With plenty of time for other offers to surface already…

… support from its founding shareholders (71% ownership), and a purchase price that represents a peak earnings multiple - this bid is likely to be the last.

Of course we lose two solid financials stocks just days after the GO REIT IPO - one step forward, two steps back… for now.

Celestica (CLS) finished 17% higher on its Q2 results, which beat top and bottom line estimates handily and was accompanied by a huge bump to full-year guidance.

The beat was powered by another massive quarter from the communications segment, which grew ~75% Y/Y in Q2 and 82% in H1.

With revenue accelerating as strongly as it has through the first half there could be even more upside to the guide, which calls for growth in the 60-65% range.

Air Canada (AC) fell 12% on earnings, where the company edged out revenue estimates but missed on profit due to higher labour and fuel costs. U.S. travel demand remains soft, with management pointing to an 11% decline in Q2 that it expects should stay weak through the back half of the year.

Algoma Steel (ASTL) put up an ugly quarter due to tariffs, which management says drove $30M of revenue impact and $64M of costs. Given the doubling of steel tariffs to 50% was implemented in early June, things could get worse before they get better.

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