UMB Financial Corp. will get cash for the planned sale of Scout Investments, Inc., a subsidiary it has owned for 35 years.
Founded in 1982 as a division of UMB Bank, Scout will be sold for $172.5 million to Carillon Tower Advisers, a division of Raymond James Financial Inc. that is based in St. Petersburg, Fla.
As of Dec. 31, Scout had $27.3 billion in assets under management. It employs 92 people, which is a small portion of UMB Financial’s total workforce.
CEO Mariner Kemper said UMB Financial still likes the Scout business but decided to sell after a strategic review session. Scout manages assets for institutional businesses, a highly competitive industry in which peers are acquiring scale and building large distribution teams.
Boards at both companies already have approved the transaction. The deal is expected to close by the end of 2017, subject to typical closing terms and conditions.