Financial Institutions Inc. of Warsaw, N.Y., has sold the employee benefits and compensation consulting firm Burke Group Inc. to First Niagara Financial Group Inc.
The sale was announced Monday. The price was not disclosed.
The $2.2 billion-asset Financial Institutions paid about $4 million for Burke Group in 2001 but earmarked the subsidiary - which had been losing money in recent quarters - for sale this summer.
News of the unit's sale to the $8 billion-asset First Niagara, of Lockport, N.Y., came less than two weeks after Financial Institutions unveiled a plan to cut its operating costs by merging its four subsidiary banks.
First Niagara already offers employee benefits services through First Niagara Risk Management Inc. Burke Group, of Honeoye Falls, N.Y., is retaining its name for now but is expected to be folded into First Niagara's insurance unit eventually.
