UPDATE 1-City National to buy Rochdale Investment Management
April 25 (Reuters) - Los Angeles-based City National Corp said its banking unit would buy Rochdale Investment Management, in a deal that would raise the company's assets under management and administration to more than $60 billion.
The company did not disclose the specific terms of the deal, but said the deal would add modestly to earnings this year.
"The result (of the acquisition) is a much stronger and diversified national wealth management company with the scale and skills to do even more for its clients and colleagues and our shareholders," City National Chief Executive Russell Goldsmith said in a statement.
City National's focus on wealth management helped it do well during the financial crisis.
The company said the combination of City National Asset Management and Rochdale would result in an $18 billion firm focused on high-networth and affluent investors.
The unit would operate separately as a registered investment adviser within City National's wealth management business and would be led by Rochdale's current CEO, Garrett D'Alessandro.
City National's adviser was Berkshire Capital Securities LLC. Rochdale was advised by Sandler O'Neill & Partners L.P.
City National's shares closed at $52.57 on Tuesday on the New York Stock Exchange.