Cassatt & Company was a Philadelphia-based investment banking and brokerage firm founded in 1872. The firm was acquired by Merrill Lynch in 1940, shortly after Merrill's merger with E.A. Pierce & Co. that created Merrill Lynch, E.A. Pierce & Cassatt.
The Cassatt name was dropped in 1940 when the newly combined firm acquired New Orleans–based Fenner & Beane.
History
Founding and early history The firm, originally known as Lloyd, Cassatt & Company, was founded by Robert S. Cassatt, father of railroad executive Alexander Cassatt."Alexander J. Cassatt". The New York Times. June 18, 1899.
By 1919, the firm had offices in Philadelphia, New York, Pittsburgh and Baltimore."Cassatt & Co. to Open Branch". The New York Times. July 1919.
Acquisition by Merrill Lynch and E.A. Pierce
In 1931, the firm split its investment banking business from its traditional brokerage business."Cassatt & Co. Form Underwriting Unit; Stock Exchange Firm Divides Investing Business From Brokerage Activities". The New York Times. August 1931.
In 1934, Cassatt began discussions with E.A. Pierce & Co., the largest brokerage firm in the U.S. at the time about a potential merger."Merger of Cassatt & Co. And Pierce & Co. on Way". The New York Times. December 1934. In 1935, these discussions resulted in a partnership between the two firms. As part of the deal, Cassatt transferred its brokerage business to E.A. Pierce and focused exclusively on investment banking and merchant banking."Business & Finance: Personnel". Time. January 14, 1935
In the late 1930s, E.A. Pierce began discussions with Merrill Lynch about a potential merger. E.A. Pierce was struggling financially in the 1930s and was thinly capitalized.Co-Leaders: The Power of Great Partnerships. John Wiley and Sons, 1999. Following the death of Edmund C. Lynch in 1938, Winthrop Smith began discussions with Charles E. Merrill, who owned a minority interest in E.A. Pierce about a possible merger of the two firms. On April 1, 1940, Merrill Lynch, E.A. Pierce & Cassatt was formed when the two firms merged and also acquired Cassatt & Co.
References
"Cassatt & Company". Moody's Magazine, Volume 17. 1914 "Cassatt & Company, Bankers and Brokers". The Banker's Magazine, Volume 73. 1906 "Alexander J. Cassatt". The Railway Age, Volume 43, 1907