Summary
Ameriprise Financial, Inc. (AMP) filed an 8-K on November 21, 2008, to disclose anticipated merger-related costs and the expected financial impact of recent acquisitions. The company expects to record a pretax charge of approximately $40 million ($26 million after-tax) in the fourth quarter of 2008. This charge is a result of the acquisitions of Brecek & Young Advisors, Inc., HRB Financial Corporation (including H&R Block Financial Advisors), and J. & W. Seligman & Co., Incorporated, all of which closed in the fourth quarter of 2008.
Key Highlights
- 1Ameriprise Financial expects to record a pretax charge of approximately $40 million in Q4 2008 due to merger-related costs from three recent acquisitions.
- 2The after-tax impact of these merger costs is estimated to be $26 million.
- 3Three specific acquisitions are cited as the cause for these costs: Brecek & Young Advisors, HRB Financial Corporation (including H&R Block Financial Advisors), and J. & W. Seligman & Co.
- 4Brecek & Young Advisors, Inc. was acquired by a wholly owned subsidiary, Securities America Financial Corporation, and closed on October 31, 2008.
- 5HRB Financial Corporation, now known as Ameriprise Advisor Services, Inc., closed on November 1, 2008.
- 6J. & W. Seligman & Co., Incorporated closed on November 7, 2008.
- 7The company anticipates that the Brecek & Young and Seligman acquisitions will be accretive to earnings and return on equity in 2009, with the HRB acquisition expected to be accretive in the first half of 2010.