Raymond James Financial in St. Petersburg, Fla., has agreed to buy
TriState Capital Holdings in Pittsburgh.
Raymond James, parent of the $35 billion-asset Raymond James Bank,
said in a press release Thursday that it will pay about $1.1 billion in cash
and stock for the $12 billion-asset TriState. The deal is expected to close in next
year.
TriState “has a terrific, client-centric franchise focused on
serving clients with premier private banking, commercial banking and niche
investment management products and services,” Paul Reilly, Raymond James’ chairman
and CEO, said in the release.
“As we have followed the firm and management team over the past
several years, including as its largest deposit client, we’ve admired its
leadership position in offering securities-based lending through a scalable and
robust technology platform,” Reilly added. “This acquisition further
illustrates our commitment to utilize excess capital through organic and
inorganic growth that we expect to drive strong returns for shareholders over
the long term.”
TriState will continue to operate as a stand-alone division and
independently chartered bank unit of Raymond James.
Jim Getz will remain TriState’s chairman and CEO, while Brian
Fetterolf will continue to serve as CEO of TriState Capital Bank. Tim Riddle,
CEO of Chartwell Investment Partners, will also retain his title.
Raymond James said it expects the deal to be accretive to its
earnings per share in the first full year after closing, excluding merger-related
expenses, with over 8% accretion after the third year.
The primary driver of cost synergies involves replacing a portion
of TriState’s current and future higher-cost deposits with lower-cost deposits
from the Raymond James Bank Deposit Program.
Raymond James was advised by Raymond James & Associates and
Sullivan & Cromwell. TriState was advised by Stephens and Mayer Brown.
No comments:
Post a Comment