LONDON: JTC, the global professional services provider, announced the proposed acquisition of the global fiduciary and trust administration services business (Citi Trust) from Citigroup Inc. for a total consideration of $80million.
The acquisition is subject to customary regulatory approvals in all relevant jurisdictions and is expected to complete in H1 2025. The acquisition will be funded from the Group’s existing cash reserves and committed debt facilities.
Citi Trust is one of the oldest and most established fiduciary businesses globally, inclusive of the first US trust company originally founded in 1822 in New York, with its first international trust company founded in 1960.
The business provides a full suite of tailored trust solutions, operates from seven high quality trust jurisdictions (New York, Delaware, South Dakota, Jersey, Singapore, Switzerland and the Bahamas).
The total AUA serviced by Citi Trust is in excess of $70 billion across over 2,000 UHNW client relationships, with an average tenure of c.12 years.
Given the profile of Citi Trust, both in terms of the client base and geographic footprint and drawing on JTC’s prior experience with successfully integrating bank carve-outs, it is anticipated that once Citi Trust is integrated into the more focused and efficient JTC platform, the Business will achieve the Group’s well-established guidance of 33%-38% underlying EBITDA margin in the medium-term.
The acquisition is expected to deliver mid-single digit accretion to Group EPS in 2025 and high single digit EPS accretion in 2026, the first full year of ownership.
Immediately post completion of the acquisition, JTC anticipates leverage to be c. 2.0x net debt/underlying EBITDA, which is expected to reduce throughout 2025 and 2026, in line with JTC’s stated guidance.
Nigel Le Quesne, CEO of JTC, said: “Citi Trust is one of the most established and well-respected providers of trust services globally and we are delighted to have been chosen as the future custodian of its employees and clients. The acquisition is extremely complementary to JTC’s existing footprint.
It is a transformational transaction for the Group and our Private Client Services Division, increases our presence in key growth markets in the US, Europe and Asia, and brings further resilient annuity driven revenue to the Group.
We look forward to welcoming their highly experienced team to JTC, so that together we can capture the future growth opportunities that the global trust administration market offers”.
Ida Liu, Head of Citi Private Bank, said: “The decision to sell our personal trust administration and fiduciary business allows us to focus our resources on areas that will create impact for our global clients and drive growth for our Wealth business.
We will continue to provide clients with leading investment management, wealth planning, lending and banking services, while JTC will provide the highest quality trustee and fiduciary services. We are confident our clients and colleagues will benefit from JTC’s singular focus on trust administration and we are pleased our clients will continue to work with the world-class trust administration team they’ve relied on at Citi Private Bank. We look forward to working together as we transition this part of our business.”
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