ADP to spinoff subsidiary

ROSELAND, N.J., Aug. 2 (UPI) -- New Jersey's Automatic Data Processing Inc. said Wednesday it would spinoff its brokerage services business in a tax-free move.

The process will make ADP shareholders the owners of the new company and net the parent company as much as $700 million in a tax-free dividend, ADP said Wednesday.

Art Weinbach, who is retiring as chief executive of ADP on Aug. 31, will assume the role of chairman of the new public company once the spinoff is complete. Both Rich Daly and John Hogan, who are co-presidents of Brokerage Services Group, will remain as managers, with Daly as chief executive and Hogan as chief operating officer.

ADP's Brokerage Services Group has nearly $2 billion in revenues and 4,000 workers.