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FleetBoston buys Liberty unit
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June 4, 2001: 9:15 p.m. ET
Cash deal for Liberty Financial asset management business worth $1 billion
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NEW YORK (CNNfn) - FleetBoston Financial Corp. agreed late Monday to acquire the asset management unit of Liberty Financial Companies Inc. in an all-cash deal worth just over $1 billion.
The acquisition, worth $900 million, also calls for FleetBoston (FBF: Research, Estimates) to assume $110 million in debt.
FleetBoston, a regional bank, said the acquisition will add $51 billion in assets under management, bringing total assets to about $173 billion and making the bank the world's 29th largest investment manager.
The asset management unit of Liberty Financial consists of the following operations: Colonial Management Associates, Crabbe Huson Group, Liberty Asset Management Company, Liberty Funds Distributor, Liberty Funds Services, Newport Pacific Management, Progress Investment Management Company, Stein Roe & Farnham, and Liberty Wanger Asset Management.
"FleetBoston has been clear about growing higher margin, fee-based businesses, such as asset management," said Terrence Murray, FleetBoston's Chairman and Chief Executive Officer in a statement.
"Through this transaction," Murray said. "FleetBoston will now have the elements in place for substantial growth in the asset management business through distribution of a full range of investment products across all channels, managed by some of the best investment talent in the business 
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