TORONTO – Ernst & Young will expand its presence in Canada with the addition of part of the RSM Richter business, which provides a variety of services such as auditing, tax advice and restructuring services.
Financial terms of the deal were not immediately available.
Through the merger, about 140 RSM Richter employees will join about 4,300 people at Ernst & Young in Canada and 152,000 in the worldwide E&Y group worldwide.
RSM Richter’s audit, tax and transaction advisory practices in Toronto, with 130 people and its 10-member restructuring practice in Calgary will join the Ernst & Young, Richter spokesman David Fabian said Tuesday.
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“It’s an opportunity to gain from their resources,” Fabian said.
Eric Rawlinson, Ernst & Young managing partner for the Greater Toronto Area, said the RSM Richter audit and tax practice has a focus on mid-sized companies that fits E&Y’s interest in entrepreneurial businesses.
The transaction is expected to close Dec. 2.
RSM Richter Chamberland LLP in Montreal, a separate entity that has 450 people, and the firm’s restructuring practice in Toronto, which has 15 to 20 people, were not included in the deal.
The Montreal office will continue to operate under the RSM Richter brand.
The Toronto restructuring practice – which has handled several high-profile bankruptcies including the liquidation of the Eaton’s department store chain in the 1990s and Ravelston Corp., a private company formerly controlled by Conrad Black until a few years ago – is working on a separate transaction, Fabian said.
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