The acquisition is the latest step by CIBC to promote growth through minority partnerships and investments, both at home and abroad.
Under the terms of the deal, CIBC has also invested $26m indirectly in Butterfield through a private equity fund sponsored by the Carlyle Group. CIBC previously committed $150m to the Carlyle fund to invest in financial services transactions.
Gerald McCaughey, president and CEO of CIBC, said: “CIBC has demonstrated an ability to expand through minority investments, partnerships and joint ventures. This transaction fits well within our ongoing growth strategy for CIBC.
“Butterfield has strong market positions in Bermuda and the Cayman Islands as well as operations in seven other jurisdictions. As a result of the recapitalization, we and our partner investors believe that Butterfield will continue to be a leading financial institution for its clients and will provide continued value for its shareholders.”
Butterfield, with assets of $9.6bn, offers retail, corporate banking and treasury services in Bermuda, Barbados and the Cayman Islands.
CIBC Wholesale Banking and Bank of America Merrill Lynch acted as CIBC’s financial advisors and Mayer Brown and Appleby Global acted as CIBC’s legal advisors on this transaction.
