Boston (June 26, 2003) -- State Street Corp. has signed an agreement to sell its private asset management business to Charles Schwab Corp.'s U.S. Trust Corp. subsidiary for $365 million in cash.
The deal, which is expected to close in the fourth quarter, represents U.S. Trust's largest acquisition to date and gives it a foothold in the New England market. The transaction is subject to approval by federal and state banking regulators.
The Private Asset Management Group, which serves affluent individuals and families in the New England region, had $11.5 billion in assets under management at the end of March. It contributed roughly $80 million to State Street's revenue in 2002. The Boston-based group has 182 employees and offices in Connecticut, Massachusetts and New Hampshire.
The business will adopt the U.S. Trust name but will retain its current management. Eric Hayes, division head and senior principal for State Street's Private Asset Management business, will be named regional chief executive officer and will head U.S. Trust's New England business.
U.S. Trust, which is headquartered in New York City, had assets under management of $80 billion as of March 31.
-- WebCPA staff
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