Keystone to Buy Investment Firm

In the latest acquisition by a bank of an investment management firm, Keystone Financial Inc. has agreed to acquire Philadelphia-based Martindale Andres & Co. for an undisclosed sum.

Under the deal, whose price industry sources estimated at three times Martindale's revenues, Keystone's asset management division will be combined with Martindale's.

The new organization, to be called Martindale Andres & Co., will operate in West Conshohocken, Pa.

Martindale Andres initially will manage $2.2 billion of assets and will be responsible for all investment management functions of Keystone, a $4.7 billion-assed bank based in Harrisburg, Pa.

No other banks were involved in the bidding for Martindale, said Paul Schaeffer, a partner with Investment Counseling Inc., a consulting firm that served as joint adviser to Keystone and Martindale.

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