Northern Acquiring A Money Manager

Northern Trust Corp., Chicago, Tuesday announced a definitive agreement to purchase RCB International Inc., a supervisor, administrator, and trustee of institutional investment portfolios with $4.4 billion of assets.

Pending approval by regulators and shareholders of privately held RCB, the deal is expected to close in the third quarter.

Northern has agreed to pay $14.2 million cash for Chicago-based RCB, plus Northern stock worth $21 million as of Monday's close. A portion would be paid up front, while the rest would be paid in a deferred compensation package. The deal would dilute Northern's earnings by less than 1% in the first year, but should be accretive thereafter, the company said.

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