agreed to sell its McDonald Investments branch network to UBS Financial Services for up to $280 million.
Cleveland-based Key said the branch network includes 340 financial advisers, in addition to the field support staff. They work in 51 McDonald Investments offices in 14 states throughout the Northeast, Midwest, Rocky Mountains and Northwest.
Key expects to complete the sale of the business in the first quarter of 2007, subject to regulatory approval and certain other required approvals.
"We believe McDonald Investments' branch business fits better strategically with UBS, which is dedicated to providing the necessary capital, technology and management resources required to expand this organization," said Key CEO Henry L. Meyer III. "Key will retain its separate and existing Key Trust, Key Wealth Management and Key Private Banking business groups. Additionally, through our Key Investment Services business -- which operates from our retail banking KeyCenters -- we will continue to offer products such as mutual funds and annuities."
Key acquired McDonald Investments in 1998. The sale to UBS involves only the McDonald Investments' branch network. McDonald's former institutional businesses -- including investment banking, debt and equity capital markets, public finance and research -- remain part of KeyBanc Capital Markets.