Administration February 5, 2003

Boston Private Acquiring Dalton Greiner

May 2, 2003 (PLANSPONSOR.com) - Boston Private Financial Holdings, Inc. has announced the signing of a definitive agreement to acquire an 80% interest in Dalton, Greiner, Hartman, Maher & Co. (DGHM) of New York.
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The acquisition includes DGHM client assets currently concentrated in value style small-cap equities. Members of the DGHM management team will retain the remaining 20% interest in the firm, according to a news release.

DGHM, founded in 1990, currently manages $2.2 billion in client assets primarily offering mid-cap value, small-cap value and micro-cap value products.   Further, the firm manages three specialty products: ValueTech (a value approach to technology stocks), UltraValue (a highly concentrated value portfolio), and Enhanced Value (a long/short hedge fund).   Clients of DGHM include:

  • American Express
  • University of Toronto
  • New Hampshire Retirement System
  • Emerson
  • The W.K. Kellogg Foundation.

Boston Private currently has six operating companies that focus on investment management, private banking and financial planning in New England and Northern California. Additionally, Boston Public has a minority investment in a seventh company in the Pacific Northwest. The DGHM acquisition will expand the firm’s presence to a fourth region centered around New York City.

The transaction’s initial purchase price is expected to be approximately $75 million, with approximately 91% payable in cash.   However, the total purchase price could change as it is contingent upon the contracts transferred and operating results through a five-year earn-out period.

The transaction is expected to close in the third quarter of 2003, and is subject to several conditions, including regulatory approvals. However, the transaction is expected to be immediately accretive on a cash basis to Boston Private and accretive on a GAAP basis within the first 12-month period.

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