2008-02-01 22:58:49 -
- Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) today announced that it completed the acquisition of a majority interest in Davidson Trust Company, a wealth management company located in the heart of Philadelphia's affluent "Main Line".
Davidson provides investment management and personalized fiduciary services for high net worth clients, with a focus on coordinating the investment, tax and fiduciary
elements of wealth management. As of December 31, 2007, Davidson Capital Management had approximately $1 billion of assets under management. James M. Davidson, founder, will continue as Chairman and Alvin A. Clay III, an established wealth management professional with over 25 years experience in the Philadelphia region, will become CEO.
"Davidson establishes our footprint in the growing Philadelphia market, which has been one of our strategic objectives," said Boston Private Chairman and CEO Timothy L. Vaill. "Davidson provides Boston Private with the opportunity to further expand our business in the burgeoning market for wealth management services."
James M. Davidson, Founder and Chairman of Davidson, commented, "We are enthusiastic about joining the Boston Private family. We were particularly encouraged by their unique approach to the acquisition, which enables us to maintain our independence while providing our clients with a compelling wealth management experience. We believe that partnering with Boston Private will help position the Davidson organization to deliver long-term growth."
"I have admired Davidson during my many years in the Philadelphia wealth management marketplace," stated Al Clay. "I am thrilled to join such a talented team with comprehensive experience in the wealth advisory business."
"Davidson is a strong addition to our family of affiliate partners," said Jay Cromarty, Chief Executive Officer, of Boston Private's Wealth Advisory Business Segment. "They have built a tremendous organization that is poised to enter the next phase of growth."
Under the terms of the agreement, Boston Private will acquire a 70% interest in the Davidson Trust Company. The remaining 30% will be owned by Al Clay, Jim Davidson and the other senior executives of Davidson Capital Management.
Berkshire Capital and Goodwin Procter LLP assisted Boston Private on this transaction. Drinker Biddle advised Davidson Trust Company.
Boston Private Wealth Management Group
Boston Private is a financial services company that owns independently operated affiliates located in key geographic regions of the U.S. Boston Private's Affiliate Partners offer private banking, wealth advisory and investment management services to the high net worth marketplace, selected businesses and institutions. The Company's strategy is to enter new markets primarily through selected acquisitions, and then expand its wealth management business by way of organic growth. It makes investments in mid-size firms in demographically attractive areas, forming geographic clusters that represent the firm's core competencies. Boston Private provides continuing assistance to its affiliates with strategic matters, marketing, compliance and operations. For more information about Boston Private, visit the Company's web site at www.bostonprivate.com
Davidson Trust Company
Davidson Trust Company, chartered by the Commonwealth of Pennsylvania in 1989, was established to serve client needs for investment counsel and personalized fiduciary services. DTC concentrates on the coordination of the investment, tax and fiduciary aspects of wealth management. Davidson Investment Counselors, the investment management affiliate which is being consolidated into Davidson Trust Company, was founded in 1974 to provide clients with a conservative, long-term approach to investing in the financial markets with seasoned equity and fixed income disciplines.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements about the benefits of the transaction to Davidson or Boston Private, including future financial and operating results, enhanced and future revenues that may be realized from the transaction, the accretive effect of the transaction on Boston Private's financial results, and Boston Private's strategic and performance goals for Davidson; (ii) statements with respect to Boston Private's or Davidson's strategy, initiatives, plans, objectives, expectations, and intentions; (iii) statements regarding the expected timing of the transaction; (iv) statements regarding future operations, market position or prospects of either Boston Private or Davidson; and (v) other statements identified by words such as "will", "continues", "increases", "expand", "grow", "opportunity", "believes," "expects," "anticipates," "estimates," "intends," "plans," "target," and similar expressions. These statements are based upon the current beliefs and expectations of Boston Private's and Davidson's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in such forward-looking statements: (1) the expected benefits to Boston Private's wealth management initiatives may not be realized or may be realized more slowly than expected; (2) expected revenue and business synergies from the transaction may not be fully realized or realized within the expected time frame; (3) competitive pressures among investment management companies may increase significantly or have an adverse effect on pricing, spending, product offerings, third-party relationships, revenues and Boston Private's and Davidson's abilities to attract and retain clients; (4) the strength of the United States economy in general and specifically the strength of the Philadelphia and other economies in which Boston Private and Davidson will be operating may be different than expected resulting in, among other things, a reduced demand for wealth management services; and (5) adverse conditions in the stock market, the public debt market and other capital markets and the impact of such conditions on Boston Private's and Davidson's asset management activities and fees from such activities. Additional factors that could cause Boston Private's results to differ materially from those described in the forward-looking statements can be found in Boston Private's other press releases and Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the Securities and Exchange Commission. All subsequent written and oral forward-looking statements concerning the proposed transaction or other matters and attributable to Boston Private, Davidson or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements referenced above. Neither Boston Private nor Davidson undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
Media:
Boston Private Financial Holdings, Inc.
Catharine Sheehan, 617-912-3767
Vice President, Corporate Communications
csheehan@bostonprivate.com
or
Sloane & Company
Emily Porro, 212-446-1874
eporro@sloanepr.com
or
Investors:
Boston Private Financial Holdings, Inc.
Erica E. Smith, 617-912-3766
Vice President, Investor Relations
esmith@bostonprivate.com 
