Banca Leonardo buys Sal Oppenheim unit

Italy’s Gruppo Banca Leonardo on Friday bought Sal Oppenheim’s Swiss corporate finance unit, adding Switzerland to its European corporate finance and wealth management network.

Leonardo, led by former Lazard dealmaker Gerardo Braggiotti, has emerged as one of the fastest growing boutique finance houses. The company advised on several large debt restructurings including Germany’s Karstadt and Italy’s Tassara. It was also adviser to Enel Green Power’s public listing.

Leonardo declined to put a price on the deal, but said it would acquire Sal Oppenheim’s team of 14 bankers. The operation has carried out more than 60 assignments over the past 10 years representing a transaction volume of over SFr30bn ($31bn).

As part of the deal, the asset management subsidiary, 4IP, and the real estate valuation business will be spun off.

The team, led by Ronald Sauser will continue to provide mergers and acquisitions, equity capital markets and debt advisory and restructuring services.

The Zurich-based Sal Oppenheim team has gained a strong reputation, focusing on transactions for small and medium-sized companies. The group operated with considerable independence, having transferred some years ago as a single unit to the Swiss Sal Oppenheim subsidiary from Ernst & Young in 2005.

Mr Braggiotti, Leonardo chief executive, said the acquisition represented “a further major step in the implementation of Leonardo’s strategy to create a pan-European corporate finance advisory business. A market-leading presence in Switzerland has been high on our priority list.”

In 2009, both Italy’s Mediobanca and Australia’s Macquarie had been in talks to buy Sal Oppenheim’s entire investment bank, with 300 staff and corporate finance, mergers and acquisitions advisory and research businesses.

However the talks – initiated soon after Deutsche Bank moved in on its smaller German counterpart – collapsed and eventually Macquarie focused instead on Oppenheim’s equity trading and derivative operations, with 90 staff in Germany and Switzerland

Leonardo’s European advisory business is currently based in Milan, with offices in Rome, Paris, Frankfurt, Brussels, Amsterdam and Madrid. Mr Sauser will remain chief executive of the Swiss unit and become a member of the European advisory business committee upon completion of the transaction. Leonid Baur and Øyvind Bjordal will remain co-heads of the Swiss advisory business.

The transaction is subject to the approval of the Bank of Italy and should be completed in April 2011.