The Trust Company to buy NZ Guardian Trust

Company News

The Trust Company Ltd (ASX:TRU) has inked a deal to buy The NZ Guardian Trust Company Ltd from Suncorp-Metway Ltd (ASX:SUN) for $32 million.

The Trust Company says the new acquisition is expected to boost total funds under supervision by 38 per cent, from $118 billion to $163 billion.

Annual revenues are also expected to climb by over 50 per cent, to $86 million, with earnings per share accretive from year one.

The Trust Company says it will fund the deal through existing cash and a committed term debt facility if needed. CEO John Atkin says the new acquisition will deliver the increased scale, services and expertise required to enable the company to expand its footprint in the Asia-Pacific region.

The Trust Company expects to finalise the transaction by 28 February 2011.

The Trust Company generated a net profit of $5.5 million for the half year ended on the 31 August 2010.