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Investing December 7, 2000
State Street Buys High Net Worth Manager
December 7, 2000 (PLANSPONSOR.com) - State Street
has agreed to buy a majority interest (75%) in money manager
Bel Air Investment for $217 million in cash and
stock.
Reported by Nevin E. Adams
Los Angeles-based Bel Air Investment Advisors focuses on managing funds of wealthy clients, and had $3.1 billion in assets under management for 200 clients and $600 million in brokerage assets at September 30.
State Street, which will issue 900,000 shares in the deal, expects the acquisition to reduce its earnings by five cents a share in fiscal 2001 and three cents a share in 2002, according to Dow Jones.
State Street has the option to purchase the remaining 25% beginning in 2006 – and Bel Air’s owners can require State Street to purchase a portion of the 25% stake beginning in 2004.
Bel Air executives signed non-competition agreements good for up to five years after closing, currently slated for early next year.