Hudson Valley Holding in Yonkers, N.Y., has agreed to sell A.R. Schmeidler & Co., an investment adviser unit, to Pine Street Asset Management.
The $3.1 billion-asset Hudson Valley will receive $7 million in cash when the deal closes, which is expected to take place in January. Hudson Valley could receive up to $8.5 million in added consideration depending on how its former subsidiary performs over the next six years.
"By affiliating with Pine Street, ARS will have direct access to their platform, which will allow ARS to offer enhanced services and capabilities to better serve their customers," Stephen Brown, Hudson Valley's president and chief executive, said in a press release Thursday. Pine Street "specializes in providing high net worth individuals and families with a comprehensive range of customized wealth management services."
Hudson Valley, which agreed earlier this month to sell itself to the $7.3 billion-asset Sterling Bancorp in Montebello, N.Y., for $539 million, bought A.R. Schmeidler in 2004. The unit has been providing services to Hudson Valley's high net worth customers and trusts.
Silver Lane Advisors and Day Pitney advised Hudson Valley in the sale of A.R. Schmeidler.