Hancock in Miss. to buy Capital One's trust and asset management business
Hancock Holding in New Orleans has agreed to buy Capital One Financial’s trust and asset management business.
The $27 billion-asset Hancock said in a press release Monday that the acquisition should be immediately accretive to its earnings per share. Hancock did not disclose the price it will pay. The deal is expected to close in the second quarter.
“This transaction is an excellent strategic fit with our existing … wealth management group, and illustrates the type of largely in-market, low-risk business deals we prefer under our current M&A strategy,” John Hairston, Hancock’s president & CEO, said in the release.
The deal will add about $10 billion in assets under administration and $4 billion in assets under management. Hancock's trust business is expected to generate annual revenue of $70 million to $75 million after the deal closes.
A significant portion of the business being acquired is in Louisiana and east Texas. Hancock will also maintain a presence in the New York area for new and existing clients.
Morgan Stanley and Alston & Bird advised Hancock.