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EXHIBIT 99.1
Boston Private Acquires California Investment Firm
Expands Wealth Management Reach
BOSTON, June 12 -- Boston Private Financial Holdings, Inc. today announced the
acquisition of Sand Hill Advisors, Inc., an 18-year old investment advisory firm
catering to the wealth management market, primarily in Northern California. Sand
Hill Advisors, which is based in Menlo Park, California, will operate as a
wholly owned subsidiary of Boston Private. The purchase price is estimated to be
$16 million, which includes the initial and contingent payments, and will be
paid using a combination of cash (70%) and BPFH common stock (30%). This
transaction is expected to be accretive immediately.
According to Timothy L. Vaill, Chairman and CEO of Boston Private, Sand Hill has
established a strong reputation not only as a balanced investment manager with
an equity discipline espousing "growth at a reasonable price," but has also
distinguished itself as an expert in concentrated or single-stock positions.
"These situations require very careful tax planning, asset allocation and
diversification strategies, and this is a valuable competency in high-growth,
new economy markets," Vaill said. Sand Hill currently manages approximately $900
million, a little less than half of which is in this concentrated form. "We
couldn't be more pleased with the professional expertise, client portfolios, and
marketplace reputation that Sand Hill brings to the Boston Private
organization," added Vaill.
Sand Hill Advisors will operate under the leadership of its CEO, Gary Conway,
and its President, Jane Williams. Conway and Williams founded Sand Hill in 1982,
and together have steadily grown the firm focusing on investment performance and
client service. The Northern California investment management market has grown
considerably in the past twenty years, and Menlo Park, in particular, located in
the heart of Silicon Valley, has provided the firm with significant exposure to
high growth situations. "Affiliation with Boston Private will significantly
expand our financial planning capacity, our cash management service and will
give our clients access to trust and lending services as we manage in this
growth environment," said Conway. "We are thrilled to become part of this
dynamic organization which is dedicated to building a relationship foundation
with its clients and working with them throughout their financial lives." Ms.
Williams added that Sand Hill is successfully focused on the entrepreneurial
element of Silicon Valley with female decision-makers a significant part of its
business. "A majority of our senior investment staff are women, and that has
proved to be a significant advantage when serving this diverse California
marketplace," she said. "We believe that this competency will add another
dimension to Boston Private's capabilities."
As an independent subsidiary of Boston Private Financial Holdings, Sand Hill
Advisors continues to operate under its own name, with no changes to existing
staff. Sand Hill has approximately 180 clients with revenues in excess of $5
million, and employs 14 people, including 6 principals.
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The acquisition gives Boston Private Financial Holdings an attractive
geographical franchise and consolidates its wealth management business in two of
the strongest growth markets in the country. "Silicon Valley and the New England
region were the top two beneficiaries of incremental investment dollars and new
business growth in the past decade," says Vaill. "Further," he adds, "we believe
this geographic diversification will be very advantageous to our business
through various economic cycles." "Finally," he concluded, "Sand Hill clients
can now take full advantage of Boston Private's well- established financial
services, including small-cap growth strategies and private equity partnerships
at Westfield, tax strategies and complex estate planning at RINET, and
mortgages, commercial loans and internet banking services at Boston Private
Bank."
Boston Private Financial Holdings offers a full range of financial planning,
investment management, private banking, commercial and residential lending
services to its domestic and international clientele through its four
subsidiaries: Boston Private Bank & Trust Company, Westfield Capital Management
Company, Inc., RINET Company, Inc., and Sand Hill Advisors.
Boston Private Bank & Trust Company specializes in providing private banking and
investment services to individuals, their families and businesses. It has an
investment management emphasis on mid to large cap equity and actively managed
fixed income portfolios. Boston Private Bank & Trust Company also offers a First
Time Homebuyer Program and "soft second" mortgage financing. Under its
Accessible Banking Program, the Bank is an active provider of real estate
financing for affordable housing, economic development and small businesses.
Westfield Capital Management Company, whose clients consist of high net worth
individuals, corporate pension funds, endowments and foundations, specializes in
separately managed growth equity portfolios. Westfield also acts as the
investment manager of five limited partnerships. Its investment services include
a particular focus on identifying and managing small and mid cap equity
positions as well as balanced growth accounts.
RINET Company provides fee-only financial planning, tax planning and investment
management services to high net worth individuals and their families. Its
capabilities include tax planning and preparation, asset allocation, estate
planning, charitable planning, planning for employment benefits, including
401(k) plans, alternative investment analysis and mutual fund investing.
Sand Hill Advisors manages equity and fixed income accounts for high net worth
clients and selected institutions primarily in the California region. In
addition to separately managed relationships, Sand Hill manages a no-load mutual
fund and uses its expertise to plan and execute diversification programs for
concentrated stock positions.
Certain matters in this news release may constitute forward-looking statements
within the meaning of the federal securities laws. The Company's actual results
could differ materially from those projected in the forward- looking statements
as the result of, among other factors, changes in loan defaults and charge-off
rates, reduction in deposit levels necessitating increased borrowing to fund
loans and investments, changes in interest rates, and in the securities or
financial markets, or in general economic conditions, changes in assumptions
used in making such forward-looking statements, as well as factors identified
from time to time in the Company's filings with the Securities & Exchange
Commission.
