Trust Company buys NZ's Guardian Trust

Trust Company buys NZ's Guardian Trust

Trustee the Trust Company (ASX:WBC) has completed the acquisition of New Zealand's Guardian Trust for $31.6 million, after receiving regulatory approval for the deal.

The purchase from the Suncorp Group (ASX:SUN) has been approved by New Zealand's Overseas Investment Office, the companies said.

Trust Company expects the deal to be earnings per share accretive from year one, and that Guardian Trust will generate projected full-year revenues of around $27.4 million.

Guardian Trust has assets under administration totalling about $4.8 billion.

Trust Company CEO John Atkin said the company intended to apply the operating model used by Guardian Trust across its entire personal clients business.

“[This] should allow us, over time, to... provide a more sophisticated wealth management solution across the region, he said.”

But he warned the FY12 results for this business segment will be affected by the absence of contribution from a capital commissions project, a non-recurring revenue scheme that has increased revenue in FY11.

TRU shares fell 0.48% on Tuesday to $6.250.

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Tags Mergers and acquisitionsSuncorpThe Trust CompanyASX:SUNASX:TRUtrustee

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