REG - JTC PLC - Acquisition of First Republic Trust Co of Delaware

JTCAnnouncement

22/04/2024 07:00

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RNS Number : 4119L  JTC PLC  22 April 2024

Proposed ACQUISITION OF FIRST REPUBLIC TRUST COMPANY OF DELAWARE LLC

22 April 2024

 

JTC PLC

(the "Company" together with its subsidiaries (the "Group" or "JTC")

 

Proposed Acquisition of First Republic Trust Company of Delaware LLC
("FRTC-DE")

JTC strengthens its position as the leading independent provider of trust
administration services in the US with the proposed acquisition of First
Republic Trust Company of Delaware LLC

 

JTC, the global professional services business, is pleased to announce the
proposed acquisition of First Republic Trust Company of Delaware LLC
("FRTC-DE"), which is a wholly owned subsidiary of JPMorgan Chase Bank, N.A.
("JPMorgan").

 

Background to FRTC-DE

FRTC-DE is a provider of trust administration services to high-net-worth
individuals and is headquartered in Wilmington, Delaware. The company has
approximately $9bn of assets under administration by market value and has a
dedicated team of trust professionals all with significant expertise in the
trust administration market.

Post-completion of the acquisition, FRTC-DE will become part of JTC's Private
Client Services division.

Strategic Rationale

The acquisition of FRTC-DE builds on JTC's position as the leading independent
provider of trust services in the US, bringing further scale in this large,
highly valuable, fast-growing and fragmented market.

FRTC-DE is highly complementary to JTC's recent acquisitions of South Dakota
Trust Company ("SDTC") and New York Private Trust Company ("NYPTC"). As with
SDTC and NYPTC, the acquisition will provide opportunities to increase share
of wallet in the wider private client services market in the US, supported by
JTC's Private Office offering together with corporate, accounting, regulatory
reporting and family governance services.

The proposed acquisition builds on JTC's strong track record of institutional
carve outs, which includes the acquisition of Kleinwort Benson's fund
administration business in 2015, the acquisition of Merrill Lynch's
international trust & wealth structuring business in 2017 and the
acquisition of RBC's employee benefit plan administration business in 2021.

The total consideration of $21.0 million, subject to customary working capital
adjustments, will be settled in cash. The transaction remains subject to final
regulatory approvals and satisfaction of other customary closing conditions.

Financial Benefits of the Proposed Acquisition

For the year ended 31 December 2023, FRTC-DE generated revenue of $10.2m
(£8.2m) and net income of $4.5m (£3.6m). The acquisition is expected to be
accretive to EPS in the first full year of ownership. Future growth in the
business will be supported by leveraging JTC's leading position within the US
personal trust market.

 

The gross assets of the subject of the transaction are $26.6m (£20.8m) as at
31 December 2023.

 

Nigel Le Quesne, Chief Executive Officer of JTC, said:

"We are delighted to announce the proposed acquisition of FRTC-DE, subject to
final regulatory approvals. We are looking forward to welcoming FRTC-DE's
highly experienced team and their clients to JTC, as we further develop and
expand our personal trust services in this large and fast-growing market.
 FRTC-DE builds on our successful acquisitions of SDTC and NYPTC, bringing us
greater scale in the US and provides opportunities to offer our wider range of
services to FRTC-DE's clients."

Enquiries

 

 JTC PLC                                          +44 (0) 1534 700 000
 Nigel Le Quesne, Chief Executive Officer
 Martin Fotheringham, Chief Financial Officer
 David Vieira, Chief Communications Officer

 Camarco
 Geoffrey Pelham-Lane                             +44 (0) 7733 124 226
 Sam Morris                                       +44 (0) 7796 827 008
 Charles Dingwall                                 +44 (0) 7586 712 964
 (JTC@camarco.co.uk (mailto:JTC@camarco.co.uk) )

About JTC

JTC is a publicly listed, global professional services business with deep
expertise in fund, corporate and private client services. Every JTC person is
an owner of the business, and this fundamental part of our culture aligns us
with the best interests of all our stakeholders. Our purpose is to maximize
potential, and our success is built on service excellence, long-term
relationships and technology capabilities that drive efficiency and add value.

http://www.jtcgroup.com (http://www.jtcgroup.com)

 

 

 

 

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