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Citizens Boosts Advisory Unit With Trinity Capital Buyout

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Citizens Financial Group CFG has closed the acquisition of Trinity Capital, thereby making it a part Citizens Capital Markets, a wholly owned subsidiary of Citizens Financial. Terms of the all-cash deal, announced in February 2020, remained undisclosed.

Based in Los Angeles, Trinity Capital is a provider of financial advice to middle-market businesses on M&As, leveraged and management buyouts, private placements of debt and equity, debt restructuring and strategic advisory assignments.

With this deal, Citizens Financial has been able to add key talent and solutions, further strengthening its growing advisory capabilities. Also, Trinity Capital’s expertise in the restaurant, retail, food and beverage, and agricultural sectors will expand Citizens Financial’s product offerings.

Similar Deals        

In March 2019, in an all-cash deal, the company acquired certain assets of Bowstring Advisors, which provides a range of financial services to commercial and industrial clients nationwide.

Further, in January, Citizens Financial completed the buyout of Tarrytown, NY-based Clarfeld Financial Advisors, LLC, for an undisclosed amount. In August 2018, the company concluded the buyout of Franklin American Mortgage Company. The all-cash deal, announced in early June 2018, was valued at $511 million.

Our Take

Citizens Financial’s involvement in strategic acquisitions reflects its strong capital position and aim to expand reach and product offerings. Also, it continues to focus on revenue and efficiency initiatives, dubbed the TOP Program. However, costs are witnessing a rise.

Shares of Citizens Financial have lost around 7% in the past six months compared with the 4.4% decline witnessed by the industry it belongs to.

Currently, Citizens Financial carries a Zacks Rank #3 (Hold).    

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