Boston Private Enters Florida With $245M Gibraltar Bank Buy

Gibraltar will retain its name and continue to be headed by Steven Hayworth, founder, president and CEO. It will lead Boston Private's expansion in South Florida and the Southeast, Hayworth says, specifically pointing to "growth opportunities in Palm Beach County, along the Treasure Coast, on Florida's west coast, and outside of Florida to such cities as Atlanta."

Calling Gibraltar "the centerpiece of its wealth management strategy in the Southeastern US," Timothy L. Vaill, chairman and CEO of Boston Private, says in a statement, "of course the Florida market has a high cost of entry, but we believe this transaction is attractive for many reasons. With the prospects for continued growth in the Florida market, the opportunity to partner with one of the most attractive wealth management players in the region made this an easy decision for us."

Vaill notes that Florida is the third fastest growing state after California and Texas and that Miami-Dade and Broward are this state's most populous counties. "An attractive business climate has led to robust economic development over the past decade, creating significant new wealth in the region. In Coral Gables, Gibraltar's home base," he continues, "this has generated, among other things, median household income which is 84% higher than the national median."

Boston Private operates in California, the Pacific Northwest and New York in addition to New England.

Under the terms of the agreement, Gibraltar common shareholders will receive an aggregate of $113 million in cash and an aggregate of approximately 4.3 million shares of Boston Private common stock, based on a five-day trading average of $23.33 a share. The transaction is expected to close in fourth quarter 2005.