Aiming to beef up its wealth management business, Provident Bank in Jersey City has struck a deal to acquire Beacon Financial Corp. of Morristown, N.J., for up to $10.5 million in cash.
Under terms of the deal announced Thursday, Beacon's two units — Beacon Trust Co. and Beacon Global Asset Management Inc — would be rolled into Provident's wealth management division, creating an entity with roughly $1.65 billion of assets under management. James Nesci, Provident's chief wealth management officer, is to become president of the expanded wealth management arm, which would be headquartered in Morristown.
Christopher Martin, the chairman, president and chief executive officer at the $6.8 billion-asset Provident, said that the addition of an established trust company would expand Provident's wealth management business throughout New Jersey. "Coupled with our 80-plus branch network, Beacon's expertise in trust and wealth management services will strategically position our organization to enhance market share and noninterest earnings growth," Martin said in a news release.
Provident said that it price would be based on the acquired firms' performance in the three years after the acquisition is completed. The deal is expected to close in the third quarter.