The company is expected to receive approximately $59m in initial proceeds
Boston Private Financial Holdings, a bank holding company, is all set to complete the sale of its Westfield Capital Management unit by the fourth quarter of 2009 – reported Reuters.
Reportedly, Boston Private is expected to receive approximately $59m in initial proceeds. The company said in a statement that it will retain a 12.5% revenue share in Westfield for eight years.
Timothy Vaill, chief executive of Boston Private said that through the agreement, the company is expected to further strengthen its capital position, while exiting a business that has become non-strategic. Mr. William Muggia will continue to serve as CEO at Westfield Capital.
Previously, the company had agreed to complete the sale of the investment adviser to the management by 2014.
The company stated that, as part of the new agreement, it will record a one-time gain of approximately $45m, and that the transaction will improve its tangible common equity ratio by 50 basis points to 6.7%.