Mellon Adds Separate Account Biz

September 12, 2002 ( - Mellon Financial has signed a definitive agreement to acquire Ashland Management's separate accounts division, with some $590 million in separate account assets.

The acquisition will give Mellon’s subsidiary, Dreyfus Service Corporation, a total of more than $3 billion in separate account assets under management. New York City-based Ashland is a growth-style investment management company with approximately $2 billion in assets under management, according to a press release.

The transaction, expected to close by the fourth quarter of 2002, will be an all-cash deal, with initial consideration due at closing and further consideration contingent on the future performance of the acquired division. Additional terms were not disclosed. The Ashland separate accounts team will operate as a separate company reporting to Dreyfus.

Initially launched in February 2000, Dreyfus Separate Accounts provides individually managed accounts and related investment services through intermediary channels such as broker-dealers and financial planners.