PITTSBURGH Mellon Financial Corp. said it signed an agreement to purchase Chase Manhattan Corp.s 50% interest in the companies ChaseMellon Shareholder Services joint venture. The terms of the deal were not disclosed.
ChaseMellon, which was formed in May 1995, serves more than 2,000 companies nationwide and maintains more than 20 million shareholder accounts for small, middle market and Fortune 500 corporations.
The operation is to be renamed Mellon Investor Services at closing, and will be part of Mellons Global Investment Services businesses. These include institutional trust and custody, foreign exchange, securities lending, shareholder, and benefits consulting services, as well as administrative services for employee benefit plans and back-office outsourcing for investment managers. In the first six months of 2000, the sector had $531 million of revenue and $128 million of income before taxes.
Mellon Investor Services will remain in ChaseMellons Ridgefield Park, N.J. offices.
Mellon Financial said in a news release that ChaseMellons operations and staffing should not be affected by the transaction, which both parties expect to be completed by yearend.
James D. Aramanda, president and chief executive officer of the business since 1995, will remain in that position. He will report to Christopher M. Condron, Mellon Financials president and chief operating officer.
