PwC Corporate Services Cayman Acquired By Wilmington Trust

by Mike Godfrey, Tax-News.com, Washington

01 June 2006

Wilmington Trust, one of America's largest personal trust service providers, has announced that it has acquired PwC Corporate Services (Cayman) Limited (PwCS), a provider of company administration and bookkeeping facilities in the Cayman Islands, from the accounting firm PricewaterhouseCoopers.

Wilmington Trust explained that the acquisition enhances the entity management services that it provides in the Cayman Islands as part of its Corporate Client Services (CCS) business. Terms of the acquisition were not disclosed.

“The Cayman Islands are among the world’s most attractive jurisdictions for corporate business,” announced Ted T. Cecala, chairman and CEO of Wilmington Trust.

“This acquisition deepens our presence in Cayman and reflects our corporate strategy to invest in businesses with excellent potential for long-term growth," he added.

Wilmington Trust Corporation is a financial services holding company that provides wealth management and specialized corporate services to clients throughout the United States and in 85 other countries, and commercial banking services throughout the Delaware Valley region.

PwCS’s corporate services include incorporation, registered office, and directorship services, bank account and records management, bookkeeping, and other services for corporations, trusts, and other entities. This acquisition adds several hundred new accounts to Wilmington Trust’s book of business in the Cayman Islands. All but one of the PwC staff members associated with this business will join Wilmington Trust.

“As business becomes more global, many companies are increasingly looking to conduct their activities in advantageous locations, such as the Cayman Islands,” observed William J. Farrell II, executive vice president and head of Wilmington Trust’s CCS business.

“With our specialized expertise and extensive reach, Wilmington Trust is able to deliver corporate services to clients in Cayman and beyond," he added.

Fiduciary services are essential to the successful structuring of many corporate business activities. Wilmington Trust does not participate in most corporate financing, securities underwriting, or certain other advisory activities, which allows it to provide conflict-free services that many corporate clients require.

Other recent examples of Wilmington Trust’s growth strategy in the CCS business include its entry into captive insurance management services last summer and the expansion of its entity management services into Dublin in late 2004.

Revenue and expenses associated with the acquisition will be consolidated into Wilmington Trust’s financial statements. It is anticipated that the acquisition will have a neutral effect on the firm’s earnings.

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