PITTSBURGH -- Mellon Bank Corp. said Friday it completed the acquisition of The Boston Company for $1.453 billion and as a result of the merger it will eliminate 200 jobs this year.
Mellon said the purchase of The Boston Company, a trust and investment subsidiary of Shearson Lehman Brothers, will increase its trust assets under administration to about $700 billion, including some $150 billion under management.
The acquisition was announced in September.
Mellon said it will cut 200 positions this year as functions of the two companies are combined.
Mellon also announced Lawrence Kash has been named president and a director of The Boston Company and Boston Safe Deposit and Trust Co.
Kash, a Mellon executive vice president who recently headed Mellon's private banking activities, will be responsible for managing investment products, including advisory and administrative services for mutual funds.
William Nutt, president of The Boston Company since 1989, will not join the combined organization, Mellon said.
Mellon and The Boston Company will continue to use those names.
The combined company, Mellon said, will be a leader in five investment businesses including institutional trust with $440 billion in assets under administration; mutual fund services with some $105 billion in assets; institutional asset management with about $120 billion in assets under management; and private banking with roughly $35 billion in assets under management and administration.
'This acquisition positions Mellon for long-term leadership in businesses with excellent growth prospects,' said Frank Cahouet, chairman and chief executive officer of Mellon.
Cahouet said the combined assets under administration have increased by approximately $30 billion since September.
Mellon's trust and investment business, which includes its trust and investment department and The Boston Company, will be headed by W. Keith Smith, as previously announced.
Smith, who is vice chairman of Mellon, will become chairman and chief executive officer of The Boston Company.
Peter Gallary, executive vice president and head of the investor services group at The Boston Company, will remain in those position and he also will become president of The Boston Company Advisors Inc., reporting to Kash.
