Bank to Buy Taft-Hartley Asset Manager

January 22, 2003 ( - A Baltimore bank has agreed to acquire a Cleveland retirement plan asset manager, the bank announced.

Mercantile Bankshares Corporation said it would acquire Boyd Watterson Asset Management, LLC, which has approximately $3.75 billion in assets under management. Founded in 1928, Boyd Watterson currently provides investment management to Taft-Hartley accounts, corporate retirement plans, endowments and foundations, public funds and high net worth individuals, according to the news media release.

The pending acquisition strengthens Mercantile’s existing investment and wealth management business, particularly in fixed income, while extending its long-standing Taft-Hartley business, bank officials said. In keeping with Mercantile’s general corporate philosophy, Boyd Watterson will operate as a distinct business unit, retaining its brand identity, management and investment teams.

As part of the deal, Boyd Watterson shareholders will receive $19.05 million in cash, and Mercantile will assume certain indebtedness of Boyd Watterson. In addition, Boyd Watterson shareholders will be eligible receive up to $9.5 million in cash on the third anniversary of the transaction based on future performance. Both cash payments are subject to adjustments based on the total value of managed assets in connection with the transaction, according to the announcement.