News
April 24, 2006
PORTLAND, Ore., April 25, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- StanCorp Financial Group, Inc. ("StanCorp") today reported first quarter 2006 results and announced an agreement to acquire Invesmart, Inc., a national retirement financial services firm that administers retirement plan assets of more than $10 billion.
Acquisition of Invesmart
StanCorp also announced today that it has agreed to acquire Invesmart, Inc., a national retirement financial services firm, and all of its subsidiaries ("Invesmart"). The purchase price is approximately $85 million.
"We are excited about the enhanced products and services this acquisition will bring to current and future retirement plan customers of both organizations," said Parsons. "Our organizations are similar in many ways - operating with integrity and doing what is right for the plan sponsor and for the participant. Both organizations have an outstanding track record for award winning customer service. This further supports our commitment to grow our Asset Management group through the continued development of our retirement services business."
Invesmart is headquartered in Pittsburgh , Pennsylvania with local sales and service offices in 20 cities across the United States . The business being acquired consists of approximately 3,400 retirement plans with assets under administration of more than $10 billion.
"Both The Standard and Invesmart offer full fee disclosure and an unbiased process of mutual fund selection and monitoring for our customers," said Kim W. Ledbetter, senior vice president, Asset Management group of Standard Insurance Company. "Through this acquisition, we will expand our sales presence to more than 30 cities. Our overall goal is to become the retirement plan provider of choice in each of our target markets."
The acquisition will give retirement plans customers of StanCorp access to RightPath, Invesmart's next generation defined contribution plan. RightPath is a participant-focused approach to traditional defined contribution plans where an investment advisor has a candid, face-to-face dialog with participants during the enrollment meeting regarding their retirement financial situation, and provides individualized saving and investing tools and strategies to help them reach their retirement goals.
The transaction and related agreements are subject to various regulatory approvals and other customary conditions to closing, which are expected to occur during the next three months.
Invesmart will operate as a subsidiary of StanCorp and will become part of its recently formed Asset Management group. StanCorp expects no significant effect on earnings in 2006 and anticipates that the transaction will contribute $0.05 to $0.10 per diluted share to consolidated earnings in 2007.
Preceding press release obtained from E*Trade at www.stancorpfinancial.com. Berkshire Capital has reprinted this press release substantially in its entirety.
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