PITTSBURGH, Nov. 16 /PRNewswire-FirstCall/ -- The PNC Financial
Services Group, Inc. (NYSE: PNC) announced today it has signed a definitive
agreement to sell J.J.B. Hilliard, W.L. Lyons, Inc., a full-service
brokerage and financial services provider headquartered in Louisville, Ky.,
to Bowling Green, Ky.-based Houchens Industries, Inc. Hilliard Lyons has
more than 1,000 employees, including 411 financial consultants, with 76
branch offices, mainly in states outside of PNC's retail banking footprint.
"Our strategy is to grow client relationships in our retail banking
footprint where we have a competitive advantage and to maintain a
disciplined approach to capital management. This transaction allows us to
do both," said PNC President Joseph C. Guyaux, who leads Retail Banking.
As a result of the sale, PNC expects to report an after-tax gain of
approximately $50 million and increase its tangible capital position by
approximately $140 million after the elimination of goodwill recorded upon
the purchase of Hilliard Lyons in 1998. The transaction is estimated to be
completed in the first quarter of 2008 subject to regulatory and certain
other required approvals.
"With this transaction, Hilliard Lyons will retain its name, employees,
management team, and valuable franchise. In addition we believe the
proposed ownership, which will include employees of the company, provides
Hilliard Lyons with a tremendous opportunity to chart a course for growth
and success with the support of Houchens," said Jim Allen, chief executive
officer of Hilliard Lyons. Allen added that the 150-year-old company will
remain headquartered in Louisville.
PNC will continue to offer Wealth Management and Investment products
and services as part of the Retail Bank. Following the transaction,
Hilliard Lyons will continue to supply PNC Investments with back office and
other support services. PFPC Worldwide Inc., PNC's provider of global fund
services, will remain as Hilliard Lyons' source of separate account
management for its clients' third-party asset management relationships.
Credit Suisse and Wachtell Lipton Rosen & Katz, respectively, acted as
the financial and legal adviser to PNC. BKD, LLP and Deutsche Bank
Securities Inc. served as financial advisers and Wyatt, Tarrant & Combs,
LLP acted as legal adviser to Houchens.
The PNC Financial Services Group, Inc. (http://www.pnc.com) is one of the
nation's largest diversified financial services organizations providing
retail and business banking; specialized services for corporations and
government entities, including corporate banking, real estate finance and
asset-based lending; wealth management; asset management and global fund
services.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements regarding our
outlook or expectations with respect to the planned sale of Hilliard Lyons,
the expected costs to be incurred in connection with the disposition and
the impact of the transaction on PNC's future performance.
Forward-looking statements are subject to numerous assumptions, risks
and uncertainties, which change over time. The forward-looking statements
in this press release speak only as of the date of the press release, and
neither PNC nor Houchens assumes any duty, or undertakes, to update them.
Actual results or future events could differ, possibly materially, from
those that we anticipated in these forward-looking statements.
These forward-looking statements are subject to the principal risks and
uncertainties applicable to the business of PNC, including those generally
disclosed in the 2006 Form 10-K and in current year Form 10-Qs and 8-Ks of
PNC (accessible on the SEC's Web site at http://www.sec.gov/ and on PNC's
Web site at http://www.pnc.com/). In addition, forward-looking statements
in this press release are subject to the risks and uncertainties associated
with the fact that completion of the transaction is dependent on, among
other things, receipt of regulatory approval, the timing of which cannot be
predicted with precision at this point and which may not be received at
all, as well as the negotiation of transition service and other
arrangements among PNC, Hilliard Lyons and Houchens. The impact of the
completion of the transaction on PNC's financial statements will be
affected by the timing of the transaction.
SOURCE The PNC Financial Services Group, Inc.
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Related links:
http://www.pnc.com
http://www.prnewswire.com/comp/701257.html /
CONTACT:
Media, Brian Goerke +1-412-762-4304,
corporate.communications@pnc.com or Fred Solomon,
+1-412-762-7544, corporate.communications@pnc.com; or Investors,
William H. Callihan, +1-412-762-8257, investor.relations@pnc.com,
all of The PNC Financial Services Group, Inc.
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