Wilmington Trust Completes Acquisition of AST Capital Trust Company
WILMINGTON, DE, May 1, 2008 –- Wilmington Trust Corporation (NYSE: WL) announced it has completed the acquisition of AST Capital Trust Company, an Arizona-based provider of directed trustee and trust administration services offered through financial advisors to retirement plans, high-net-worth individuals and families, and institutional investors.
"This acquisition strengthens our position in the retirement plan services business, which has been an important contributor to Wilmington Trust's success for more than 60 years," said Ted T. Cecala, Wilmington Trust chairman and CEO. "It will also create more opportunities for growth and further strengthen our sources of revenue."
AST Capital Trust Company will assume the Wilmington Trust name after a short period. This transaction adds more than $28 billion of assets under administration to Wilmington Trust, raising total assets under administration, including corporate and personal trust accounts, to nearly $114 billion. In the retirement services business, Wilmington Trust now provides trust, custody, trading, and paying agent services for approximately $41 billion in assets in more than 3,000 retirement plans and employee benefit plans. This transaction is expected to add approximately $27 million of revenue (annualized) and be nondilutive to Wilmington Trust's earnings in 2008.
"We are seeing increasing demand in the retirement industry for independent and conflict-free service providers that have leading technology and extensive experience," said Bill Farrell, executive vice president of Wilmington Trust and head of the Corporate Client Services (CCS) business. "This makes the fit between Wilmington Trust and AST Capital Trust Company ideal. AST brings strategic leadership, superior technological solutions, and strong industry networks to Wilmington Trust."
With the closing of the acquisition, all of AST Capital Trust Company's approximately 170 staff members have joined Wilmington Trust. Most support the retirement services business from an office in Phoenix, which remains open, and are now part of CCS. Gregory W. Tschider, former president of AST Capital Trust Company, has been named to lead Wilmington Trust's retirement services business. He reports to Mr. Farrell. Approximately 30 AST Capital Trust Company staff members support the company's personal trust administration business from an office in Wilmington, Delaware. This group has joined Wilmington Trust as members of the Wealth Advisory Services (WAS) business, which is headed by Mark A. Graham, executive vice president of Wilmington Trust.
"The combination of our two firms leverages our respective strengths and makes our retirement plan services business even more attractive to a growing marketplace," said Mr. Tschider. "Together, we share a commitment to serving clients and alliance partners seeking a best-of-breed specialist in trust and custody services. We are excited about the opportunity to grow our business."
In addition to providing retirement plan services, CCS offers a variety of trustee, agency, asset management, and administrative services for institutional clients worldwide who use capital market financing structures, as well as services for clients who seek to establish and maintain nexus, or legal residency, for special purpose entities. The AST Capital Trust Company acquisition follows expansion investments Wilmington Trust made in 2007 and 2006 to expand the CCS business in Europe and add new products and services.
About Wilmington Trust
Wilmington Trust Corporation (NYSE: WL) is a financial services holding company that provides Regional Banking services throughout the mid-Atlantic region, Wealth Advisory Services for high-networth clients in 36 countries, and Corporate Client Services for institutional clients in 86 countries. Its wholly owned bank subsidiary, Wilmington Trust Company, which was founded in 1903, is one of the largest personal trust providers in the United States and the leading retail and commercial bank in Delaware. Wilmington Trust Corporation and its affiliates have offices in Arizona, California, Connecticut, Delaware, Florida, Georgia, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Pennsylvania, South Carolina, Vermont, the Cayman Islands, the Channel Islands, London, Dublin, Frankfurt, and Luxembourg.
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