Franklin Resources Inc., San Mateo, Calif., is purchasing Fiduciary Trust Co. International, New York, in an all-stock transaction valued around $825 million. In addition, Franklin Resources established an $85 million retention pool for distribution over the next four years to all Fiduciary Trust employees. The deal is expected to close by the end of the first quarter.
The combined entity will have $285 billion under management; Franklin manages about $230 billion, and Fiduciary Trust, about $55 billion. The deal doubles Franklins institutional assets under management, significantly increases its high-net-worth market presence, and adds a stronger growth equity strategy, said the management of both companies during an analyst briefing this morning. There is little overlap in each companys client base or investment strategies, said Charles B. Johnson, chairman and CEO of Franklin Resources.
Fiduciary Trust will become a wholly owned subsidiary of Franklin and will operate autonomously. Anne M. Tatlock will remain chairwoman and CEO of Fiduciary Trust and will join Franklins office of the chairman and board of directors.
Senior Fiduciary Trust employees soon will sign employment contracts of between three and five years.