PHILADELPHIA - CoreStates Financial Corp. said it has agreed to buy Rittenhouse Financial Services Inc. and the Rittenhouse Trust Company of Radnor, Pa., in a stock swap valued at more than $55 million.
Rittenhouse Financial Services is an investment advisory firm with $5.8 billion in assets under management. The trust company is a Pennsylvania-chartered bank with $35 million in assets and $400 million in assets under management.
Rittenhouse will become an independent subsidiary under its current name and management team. George W. Connell, who founded Rittenhouse in 1979, will remain as president.
The transaction, which is subject to regulatory approval, will include a payment at closing in Corestates common stock. The payment is valued at approximately $55 million. The agreement also anticipates future payments in stock that are tied to earnings growth over a five-year period.
