- Acquisition Overview:
- JTC, headquartered in Jersey, is set to acquire First Republic Trust Company of Delaware (FRTC-DE) from JP Morgan Chase in an all-cash deal valued at $21 million.
- Complementary Acquisition:
- JTC describes FRTC-DE as “highly complementary” to its previous acquisitions of South Dakota Trust Company (SDTC) and New York Private Trust Company (NYPTC).
- Deal Impact:
- The proposed acquisition will see FRTC-DE and its $9 billion worth of assets under administration absorbed into JTC’s private client services division.
- It provides opportunities for JTC to increase its share of wallet in the wider private client services market in the US, bolstered by FRTC-DE’s private office offering and corporate, accounting, regulatory reporting, and family governance services.
- CEO’s Perspective:
- Nigel Le Quesne, CEO of JTC, views the acquisition as a means to further develop and expand the company’s personal trust services in the large and fast-growing US market.
- He sees FRTC-DE as a strategic addition, building on the success of previous acquisitions and bringing greater scale to JTC in the US.
- Previous Ownership and Financial Performance:
- JP Morgan has controlled FRTC-DE since its takeover of its parent company, First Republic Bank, in May last year.
- FRTC-DE generated revenues of $10.2 million and net income of $4.5 million according to accounts up to 31 December.
