BNP Paribas Private Bank and Insinger de Beaufort Holdings have concluded a strategic partnership. The transaction has two parts. BNP Paribas Private Bank will acquire for a consideration of 60 million a 35% interest in Insinger de Beaufort Holdings B.V., the immediate holding company of Bank Insinger de Beaufort N.V. In parallel, BNP Paribas Private Bank will combine Nachenius Tjeenk, its Dutch activities, and London private banking activities with Insinger de Beaufort’s activities. As a result, BNP Paribas Private Bank will receive additional shares in this new combined group, to reach a 60% to 65% ownership (depending on the relative Net Asset Values of the combined businesses).
This strategic partnership will create a leading Anglo-Dutch wealth manager, of which BNP Paribas Private Bank will become the majority shareholder. Insinger de Beaufort Holdings will continue to ultimately hold the remaining capital of the combined group. Liquidity mechanisms are in place for 2013, which will then allow Insinger de Beaufort Holdings to sell its stake in the new group.
Upon closing of the transaction, which is expected to occur in early 2009, the new group will manage over 10 billion of client assets, which will position it at the forefront of the wealth management industry in its target markets. It will globally employ some 250 staff and will be managed by a combined team. Headquartered in Amsterdam, the group will have branches in The Hague and Eindhoven for the Dutch private banking market and asset management activities in London for the coverage of the wealthy international clients.
This transaction is in line with BNP Paribas Private Bank’s strategy to grow in select European countries and strengthen its position in its target markets. The combined group will immediately rank among the top five players in the Dutch market and be a visible force in the key international wealth management market in London.
“This strategic partnership will enable us to create a highly visible Anglo-Dutch wealth management specialist benefiting from the backing of a global financial group,” says Francois Debiesse, CEO, BNP Paribas Private Bank who will become chairman of the supervisory board of the combined group. “By combining our strengths, and our highly complementary business models, I believe that we can build up a driving force in the buoyant Dutch domestic market and UK offshore market and further strengthen our competitive position in these markets.”
“We are very proud of the business that has been built in the Netherlands and the UK,” says Peter Sieradzki, COO of Insinger de Beaufort and CEO designate of the combined group. “We believe that now is the right time for the business to move to the next level through this strategic partnership with BNP Paribas Private Bank. With their backing as majority shareholder, we will be able to provide our clients with an even better service level and expand our product offering beyond our core activities of wealth and asset management including deposit and credit products. Our current Chief Executive Officer, Ian Kantor, who played a leading and inspirational role for over 20 years in our company, will assume the role of executive vice chairman of the Supervisory Board of the new combined group.”
“Our development in the recent past has been very strong with a doubling of business volumes in just three years, reflecting the confidence of our clients in our approach and an active growth strategy with the support of BNP Paribas,” says Cees Bijloos, CEO of Nachenius Tjeenk who will join the supervisory board of the combined group in 2009. “The combination with Insinger de Beaufort will position us as a leading wealth management specialist in the Netherlands, at a time of great opportunity.”
The completion of the contemplated strategic combination is subject to the appropriate regulatory approvals and other customary conditions precedent to closing.