Wells Fargo Bolsters Private Client Services Business With Agreement to Purchase SCI Financial Group
MINNEAPOLIS — November 21, 2000
Wells Fargo & Company and SCI Financial Group Inc. today announced that SCI will become part of Wells Fargo. Wells Fargo and SCI have entered into a definitive agreement under which SCI will merge with a wholly owned subsidiary of Wells Fargo. SCI is a privately owned financial services company headquartered in Cedar Rapids, Iowa with 130 employees. The company has branch offices in Waterloo, Iowa, Chicago, Atlanta, and Littleton, N.H.
The acquisition has been approved by the SCI Board and is expected to close in the first quarter of 2001, pending approval by federal regulators and SCI's shareholders. Terms of the definitive agreement were not disclosed.
"This is another opportunity for Wells Fargo to build on its already significant brokerage, capital management and pension businesses," said John Farrish, regional managing director of Wells Fargo Private Client Services. "SCI Financial has built a tremendous company founded on a conservative financial philosophy, outstanding team members and service that's second to none - qualities that are shared by the 117,000 team members of Wells Fargo."
"This move reflects our ongoing interest to expand the financial services and products available to our clients," said Barbara Knapp, Chairman and CEO of SCI Financial Group. "Both companies share similar cultures and I am excited by the opportunity to build on our 62-year history of providing exceptional service and advice to our clients."
SCI Financial was founded in 1938 and provides service through three subsidiaries:
- Securities Corporation of Iowa - a regional full-service
securities broker-dealer with 45 retail brokers and 20,000 clients
located in 49 states with the majority of the clients in Iowa. The
customers hold $1.3 billion in securities which are made up
primarily of equities, mutual funds, insurance annuities, CD's,
fixed income municipal, corporate and government bonds.
- SCI Capital Management - a registered investment adviser
specializing in the discretionary management of investment
portfolios. Capital Management was established as a registered
investment adviser in May 1978 and serves a wide variety of
investors including retirement trusts, charitable foundations,
college endowment funds, religious orders, Taft Hartley Trusts,
Individuals, estates and corporations. The five investment styles
are: Equity Management Account, Balanced Management Account, Fixed
Income Management Account, Blue Chip Bellwether Management Account,
and Sector Rotation Management Account.
- SCI Tower Pension Specialists - formed in August 1994 through the merger of two strong Cedar Rapids-based firms: SCI Pension Services, Inc (founded in 1981) and Benefit Plan Administration, Inc. There are 10 employees in this $88 million, full-service pension consulting and retirement plan administration company. Plans range from small professional practices to major companies with over 1,000 participants. Tower is the largest independent pension administration firm in Iowa with over 250 plans and 11,000 participants.
Wells Fargo & Company is a diversified financial services company with $263.5 billion in assets, providing banking, insurance, investments, mortgage and consumer finance from more than 5,700 stores and the Internet (wellsfargo.com) across North America and elsewhere internationally.
Wells Fargo will file a registration statement on Form S-4 with the SEC to register the shares of Wells Fargo common stock that will be issued to shareholders of SCI Financial if Wells Fargo's acquisition of SCI Financial is completed. The registration statement will include a proxy statement-prospectus that describes the proposed acquisition and provides related information. The proxy statement-prospectus will incorporate important information about Wells Fargo from documents separately filed by Wells Fargo with the SEC. The final proxy statement-prospectus will be mailed to shareholders of SCI Financial shortly before the shareholders vote on the proposed acquisition. Investors and shareholders of SCI Financial are urged to read carefully the registration statement and the final proxy statement-prospectus when they are available because the documents will contain important information about Wells Fargo, SCI Financial and the proposed acquisition. The registration statement, including the final proxy statement-prospectus and the documents incorporated by reference into the final proxy statement-prospectus, will be available for free, both on the SEC's website (www.sec.gov ) and from Wells Fargo's corporate secretary.