Associated Banc-Corp (ASB) on Jan. 5 entered into an agreement to sell its wealth management subsidiary Whitnell & Co. to Rockefeller Capital Management and form a strategic partnership with Rockefeller. Shares of the US bank holding company rose 2.8% at the close on Tuesday.
The financial terms of the transaction remain undisclosed. Whitnell is a wealth management and multi-family office services firm. Rockefeller is a privately-owned financial services firm.
Under the terms of the acquisition agreement, which is expected to close in March, Rockefeller will acquire Whitnell. In addition, Associated Bank, an ASB (ASB) bank subsidiary, will become a Midwest mortgage lending referral partner. Meanwhile, Associated Trust Company, another ASB bank subsidiary, will become a third-party trust solutions provider of Rockefeller.
Both parties will collaborate to provide select lending and asset management solutions for their respective clients.
“This partnership positions us to leverage our core capabilities through Rockefeller’s network of clients and relationships,” said Associated Banc-Corp CEO Philip B. Flynn.
Rockefeller recently expanded its services into the Chicago market. As such, the acquisition of Whitnell is expected to significantly boost Rockefeller’s presence in the Midwest.
On Dec. 15, Truist Securities raised the stock’s price target to $18 (1.8% upside potential) from $15 but reiterated a Hold rating.
From the rest of the Street, the stock scores a cautiously optimistic analyst consensus of a Moderate Buy based on 1 Buy and 2 Holds. (See ASB stock analysis on TipRanks)
Related News:
Salem Media Launches New Podcast Venture; Shares Rise 3.5%
PPG Sweetens Offer To Buy Tikkurila For $1.52B
Smart Global Tops 1Q Estimates; Street Is Bullish
