The Principal Financial Group Announces Agreement to Acquire ABN AMRO Trust Services Company
DES MOINES, IA, December 17, 2004 -- The Principal Financial Group®, the nation's 401k leader and total retirement solutions innovator, today announced a strategic agreement to acquire ABN AMRO Trust Services Company, the Chicago-based pension and retirement business of ABN AMRO, headquartered in the Netherlands. ABN AMRO Trust Services Company provides full-service defined contribution recordkeeping and investment services in the U.S., administering approximately 300 401k plans with more than 121,000 participants, representing $3.6 billion in full-service account values. Financial details of the arrangement are not being disclosed. The agreement is expected to close on Dec. 31, 2004, subject to regulatory approval.
"The acquisition of ABN AMRO Trust furthers our corporate strategy of accelerating the growth and profitability of our U.S. asset accumulation businesses," said Larry D. Zimpleman, president, Retirement & Investor Services at The Principal®. "Their retirement business provides an excellent fit with our focus on servicing the needs of growing businesses, deepening our strong leadership in the total retirement solutions market."
After completing a strategic review of its retirement services business, ABN AMRO determined it does not provide a strong strategic fit with their overall business going forward. Recognizing the need to continue offering industry leading products and service to their clients, ABN AMRO made the decision to sell the business to The Principal, a well-known retirement industry leader.
Russell Campbell, chief executive officer of ABN AMRO Asset Management North America, commented, "The Principal offers a strong match for our retirement services clients. They will provide the complete set of products and services needed today to best serve plan sponsor clients and their participants."
According to Zimpleman, "As a result of the sale of the business to The Principal, clients should expect continued, seamless operations and 'business as usual' from their existing Chicago based team," he said. "Over time, while bringing together the best of both companies, clients will also have access to a broader set of total retirement solutions through The Principal, such as defined benefit, non-qualified and employee stock ownership plans," he added.
About The Principal
The Principal Financial Group® (The Principal®) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $156.0 billion in assets under management and serves some 14.7 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
About ABN AMRO
ABN AMRO Asset Management is one of the world's leading asset managers with significant experience in managing assets for private investors and for institutional clients, including central banks, pension funds, insurance companies, and other institutions. It manages assets of EUR 162 bn (as per 30-9-2004) from over 20 locations throughout the globe. The assets include individually mandated client portfolios as well as a wide range of investment funds, distributed through financial intermediaries and offered to institutional clients directly.
###
This is a press release provided by the company or its representatives. 401khelpcenter.com, LLC is not the author of this release and is not associated or affiliated with any firm or organization mentioned unless otherwise noted. Use of any information obtained from this release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.
