Wilmington Trust Expands Reach in Europe with Acquisition of Amaco (Luxembourg) S.A.
06 June 2007 - 12:00AM
Business Wire
Wilmington Trust Corporation (NYSE:WL), a leading provider of
specialised trust, agency, and administrative services to
corporations worldwide, announced today the latest expansion of its
Corporate Client Services (CCS) business in Europe with the
acquisition of Amaco (Luxembourg) S.A., a Luxembourg-based supplier
of entity management services. The organisation will be known as
Wilmington Trust SP Services (Luxembourg) S.A. The acquisition of
the Luxembourg business of Amaco Management Services, a corporate
trust provider based in the Netherlands, extends Wilmington Trust�s
capabilities for corporate clients and gives it a physical presence
in another major European financial centre. Wilmington Trust�s
other European offices are in London, England; Dublin, Ireland; and
Frankfurt, Germany. The acquisition follows several strategic
investments Wilmington Trust made in CCS in 2006, including the
opening of the Frankfurt office, the expansion of its business in
the Cayman Islands through an acquisition, and the creation of
Wilmington Trust Conduit Services, LLC to serve the collateral
administration and reporting needs of collateralized debt
obligations (CDOs), the fastest-growing area of the structured
finance industry. �Luxembourg�s central location in Europe and its
favourable legal and tax environments have long made it an
attractive jurisdiction for corporate business,� said Wilmington
Trust chairman and CEO Ted T. Cecala. �Over the past several years,
Europe has been an increasingly significant source of CCS revenue.
�This acquisition builds on that momentum and reflects our strategy
to invest in businesses with excellent growth potential.� Beyond
serving as a preferred international jurisdiction for entity
management services, Luxembourg is also an attractive location for
other specialised services that CCS provides to corporate clients
such as investment managers, captive insurance companies, and many
structured finance products, including CDOs. As a result,
Wilmington Trust�s presence in Luxembourg is expected to benefit
the CCS business as a whole. Amaco�s entity management services in
Luxembourg consist of management, domiciliation, accounting, and
director services for international holding and finance companies.
As independent service providers, both Amaco (Luxembourg) S.A. and
Wilmington Trust�s CCS group are free from potential business
conflicts that can arise when providers also offer investment
banking and lending services to their corporate clients. �Beyond
extending our capabilities in Europe, this acquisition reinforces
our competitive advantage of being an independent, conflict-free
service provider,� said Christophe Schroeder, managing director and
head of Wilmington Trust�s CCS business in Europe. �This business
approach is highly valued by corporate clients and makes for a
strong cultural fit between our respective organisations.� Amaco
(Luxembourg) S.A. employs eight staff members, all of whom will be
retained by Wilmington Trust. Terms of this acquisition were not
disclosed. Its associated revenue and expenses will be consolidated
into Wilmington Trust�s financial statements. It is anticipated
that the acquisition will have a neutral effect on Wilmington
Trust�s earnings in 2007. Wilmington Trust�s CCS business provides
specialised trust, administrative, and investment management
services for national and multinational institutions. Its entity
management services help clients maintain �nexus,� or legal
residency, in jurisdictions around the globe that offer favourable
legal and tax environments. Its capital markets services are
integral to many complex financing structures, including
asset-backed securitisations. CCS�s retirement plan services
provide trustee and custodial services for pension plans, 401(k)
plans, and other corporate plans. Wilmington Trust Corporation
(NYSE:WL) is a financial services holding company that provides
Regional Banking services throughout the Delaware Valley region,
Wealth Advisory Services for high-net-worth clients in 36
countries, and Corporate Client Services for institutional clients
in 86 countries. Its wholly owned bank subsidiary, Wilmington Trust
Company, which was founded in 1903, is one of the largest personal
trust providers in the United States and the leading retail and
commercial bank in Delaware. Wilmington Trust Corporation and its
affiliates have offices in California, Connecticut, Delaware,
Florida, Georgia, Maryland, Nevada, New Jersey, New York,
Pennsylvania, South Carolina, Vermont, the Cayman Islands, the
Channel Islands, London, Dublin, Frankfurt, and Luxembourg. For
more information, visit www.wilmingtontrust.com.
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