Trust Company acquires NZ Guardian Trust

Company News

The Trust Company Ltd (ASX:TRU) says it has completed its $31.6 million purchase of The New Zealand Guardian Trust Company from Suncorp-Metway Ltd (ASX:SUN).

The announcement comes following approval from the Overseas Investment Office of New Zealand, enabling the acquisition to now come into effect. 

At the end of last year The Trust Company said it expects the new acquisition to increase annual revenues by 50 per cent to $86 million, with earnings per share accretive from year one.

Around $1.5 million in acquisition expenses will be charged to the company’s full year earnings.

The Trust Company is due to release its full 2011 financial year results on 19 April, 2011.

In the six months to the 31 August 2010, The Trust Company posted a net profit of $5.5 million.