First Union Corp. has reached agreement to acquire Keystone Investments for stock worth approximately $183 million and assumption of $106 million in debt. The transaction valued at approximately 1.9 times total assets is expected to close in late 1996 or early 1997. Keystone is owned by its officers and employees
With the purchase of Keystone, First Union will become the third-largest bank mutual fund family and the 27th-largest mutual fund manager in the United States, First Union said. Combined, the company will have about $27 billion in assets in 69 funds.
Keystone will operate as a separate company. Albert H. Elfner III will remain chairman and CEO of Keystone; he'll report to Donald McMullen, First Union executive vice president and head of the capital management group.