|Acquisition includes Wells Fargo's defined contribution, defined benefit, executive deferred compensation, employee stock ownership plans, institutional trust and custody and institutional asset advisory businesses
Doubles Principal U.S. retirement business and expands on its trust & custody and discretionary asset allocation capabilities
Integration work underway with leader appointments and location commitments
July 01, 2019 10:21 AM Eastern Daylight Time
DES MOINES, Iowa--(BUSINESS WIRE)--Today, Principal Financial Group® (Nasdaq: PFG) announced the closing of its acquisition of the Wells Fargo & Company (NYSE: WFC) Institutional Retirement & Trust business. Principal® will now begin the integration of Wells Fargo's defined contribution, defined benefit, executive deferred compensation, employee stock ownership plans, institutional trust and custody and institutional asset advisory businesses.
"With this acquisition, we are broadening our offerings and deepening our ability to serve customers with unmatched capabilities across retirement, asset management and protection solutions," said Dan Houston, chairman, president and CEO of Principal. "As a top-three leader in the U.S. retirement industry, we will be well-positioned to invest and grow our business to the benefit of our customers, employees and shareholders."
Through this acquisition, Principal will double the size of its U.S. retirement businessi, while bringing on attractive institutional trust and custody offerings for the non-retirement market and expanding its discretionary asset management footprint.
"Principal is committed to helping people live their best lives through our holistic financial solutions," said Renee Schaaf, president of Retirement & Income Solutions at Principal. "Together with the Wells Fargo Institutional Retirement & Trust business, our customers can expect a powerful combination of passion, talent and expertise to help empower them to reach their financial goals."
Last month, Principal announced its progress toward a unified retirement leadership team to help guide the integration and future organization, including appointing several executives from Wells Fargo Institutional Retirement & Trust. The company has also committed to retaining locations in: Charlotte, N.C.; Minneapolis/Roseville, Minn.; Waco, Texas; Winston-Salem, N.C.; and Manila, Philippines.
As of December 31, 2018, the respective Wells Fargo retirement businesses had $827 billion in assets under administration served by approximately 2,500 employees in locations across the U.S., Philippines and India.
Principal announced its intention to purchase Wells Fargo Institutional Retirement & Trust in April. The terms of the transaction remain consistent with what was previously announced.
Visit www.principal.com/BetterRetirement for more information.