First Mercantile Trust, a Subsidiary of EdgeCo Holdings, Announces Agreement for Strategic Acquisition of American Trust Retirement

  • First Mercantile Trust continues to augment its value proposition to
    financial intermediaries
  • EdgeCo Holdings will continue to grow the American Trust Retirement
    platform, investing to expand its national coverage and service
    offering

MEMPHIS, Tenn. & DUBUQUE, Iowa–(BUSINESS WIRE)–First Mercantile Trust Company (“FMT”) has entered into a definitive
agreement to acquire American Trust Retirement (“ATR”) from American
Trust & Savings Bank. FMT is a subsidiary of EdgeCo Holdings, Inc.
(“EdgeCo”), a leading provider of technology-enabled retirement
solutions for financial intermediaries and their clients. The
transaction, which remains subject to customary consents and regulatory
approvals, reflects a continued commitment by EdgeCo and its
subsidiaries to provide best-in-class retirement solutions to the small
and mid-sized retirement plan market.

“We set out on a path to make strategic acquisitions in the retirement
space in order to provide a differentiated offering for financial
intermediaries and their clients,” said John Moody, Chief Executive
Officer of EdgeCo. “Delivering on that commitment, we are excited about
our acquisition of ATR and the people, expertise, and technology that
will now be part of the broader retirement solutions offered by EdgeCo
subsidiaries.”

“We believe that the advisors and their respective clients, as well as
our employees, will win in a big way as a result of this acquisition,”
said Kurt Wedewer, who will be joining the firm as a Regional President
of EdgeCo’s retirement services business. “The infrastructure,
capabilities, and culture that EdgeCo and its subsidiaries bring to the
table for our staff and financial intermediaries is significant. We look
forward to expanding our value proposition to advisors, plan sponsors,
and participants on a national scale by being part of the EdgeCo family
of companies.”

ATR’s collective investment trust, discretionary trustee, and 3(38)
investment management capabilities, as well as its dedicated,
client-centric service model, are highly complementary with the existing
business of FMT. In addition, the two organizations have shared values
and a dedication to provide superior solutions to financial
intermediaries, plan sponsors, and participants.

“In the crowded retirement plan marketplace, we are excited to deliver a
differentiated and innovative value proposition built exclusively for
retirement plan advisors and professionals,” said Micah DiSalvo, Chief
Revenue Officer of EdgeCo. “With the acquisition of ATR, we will become
a leader in offering something fundamentally different in the small to
mid-market that will help intermediaries and recordkeepers alike win and
retain retirement plan business in a meaningful way.”

Upon closing of the transaction, ATR will become a division of FMT,
which was acquired by EdgeCo in November 2018. ATR’s Dubuque, IA
operations, including the existing staff, will be retained and are
anticipated to grow as the combined company expands its national reach
and service offering.

Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel and
Sandler O’Neill + Partners, L.P. served as financial advisor to American
Trust & Savings Bank. Kirkland & Ellis LLP served as legal counsel to
EdgeCo.

About EdgeCo Holdings, Inc.
Through
its subsidiaries, EdgeCo is a leading provider of best-in-class
technology-enabled solutions for financial intermediaries and their
clients. For over four decades, EdgeCo companies have provided a suite
of technology and support services including full service retirement
plan administration, brokerage, advisory, and trust and custody services
to a diverse national client base of financial intermediaries. This
client base includes registered representatives, investment advisors,
and other financial intermediaries including retirement plan
recordkeepers, TPAs, bank trust departments, broker dealers, and
insurance companies. The firm services approximately $100 billion in
client assets under custody or administration and more than 8,000
financial advisors and 500 financial institutions.

About American Trust Retirement
ATR,
a division of American Trust & Savings Bank, is located in the beautiful
and historic bluffs of downtown Dubuque, Iowa. With a history dating
back to the 1950s, ATR is a leading, full-service provider of retirement
solutions to small- and mid-sized plan sponsors. ATR works with its
financial intermediary partners to bring the major cornerstones of a
quality retirement plan – plan design, fiduciary oversight,
discretionary trust services, cost efficiency, service, and technology –
to the small- and mid-sized market. For more information visit www.americantrustretirement.com

Contacts

John Moody
[email protected]

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