JTC to acquire First Republic Trust Company of Delaware from JP Morgan for $21m
JTC, a fund, corporate, and private wealth services provider 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.
JTC to buy First Republic Trust Company of Delaware
JTC describes FRTC-DE as “highly complementary” to its previous acquisitions of South Dakota Trust Company (SDTC) and New York Private Trust Company (NYPTC).
The proposed deal, which is subject to customary closing conditions, will see FRTC-DE and its $9 billion worth of assets under administration absorbed into JTC’s private client services division.
The company says the addition of FRTC-DE into the division will “provide opportunities to increase share of wallet in the wider private client services market in the US”, a remit that is to be bolstered by FRTC-DE’s private office offering and corporate, accounting, regulatory reporting, and family governance services.
Commenting on the deal, Nigel Le Quesne, CEO of JTC, explains that the proposed acquisition boosts the company’s ambition to “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.”
JP Morgan has controlled the trust company since its takeover of its parent company, First Republic Bank, in May last year from the US Federal Deposit Insurance Corporation (FDIC), to which it paid $10.6 billion to complete the purchase.
During this period, the trust company produced revenues of $10.2 million and a net income of $4.5 million, according to accounts up to 31 December.
