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SunTrust to Buy Institutional Business of Citigroup's Robinson-Humphrey

The new SunTrust R-H Securities Offers Enhanced Investment Banking and Equity Capital Markets Services to SunTrust's Corporate Clients

PRNewswire
ATLANTA
May 14, 2001

SunTrust Banks, Inc. and Citigroup Inc. announced today the signing of a definitive agreement under which SunTrust will purchase the institutional business of The Robinson- Humphrey Company, LLC (R-H) from Citigroup's Salomon Smith Barney (SSB) unit. The transaction, which is subject to regulatory approval, is expected to close by the end of the summer. Financial terms were not disclosed.

The R-H private client business and the municipal banking, sales and trading operations, which have been previously integrated into SSB, are not included in this transaction and their management structures remain the same.

R-H's institutional business, which will now operate as "Robinson-Humphrey Equity Capital Markets," is comprised of its investment banking and capital markets divisions, along with associated areas such as equity research and administration. The investment banking division provides advisory services relating to mergers, acquisitions, business divestitures, public offerings and private placements of debt and equity. The capital markets division provides institutional sales, sales trading, soft dollar, listed and NASDAQ trading. The research department currently provides equity research coverage of more than 300 companies in the following industry sectors: business and technology services, consumer, diversified growth, financial services, healthcare and technology.

Upon closing of the transaction, SunTrust's investment banking subsidiary, SunTrust Equitable Securities, will be renamed "SunTrust R-H Securities Inc." The newly-acquired businesses will be combined with SunTrust's existing Equity Capital Markets and Merger and Acquisitions divisions to become the Robinson- Humphrey Equity Capital Markets division of SunTrust R-H Securities Inc. SunTrust R-H Securities will also include the firm's Debt Capital Markets division, which encompasses SunTrust's existing debt capital markets activities. Both divisions will be primarily based in Atlanta, but will maintain offices in Boston, Miami, Nashville, New York, Orlando, Pittsburgh, Richmond and Tampa. SunTrust R-H Securities will employ more than 700 people.

"This acquisition represents a logical extension of our overall corporate and investment banking strategy of delivering ideas, solutions, and capital to our clients," said Charles Shufeldt, SunTrust executive vice president of Corporate and Investment Banking. "The acquisition provides a significantly enhanced public equity capability and brings to SunTrust what is arguably the premier mergers and acquisitions team in the Southeast."

"When Robinson-Humphrey's institutional business is combined with SunTrust Equitable Securities' successful debt capital markets capabilities, SunTrust will be positioned to be the dominant middle-market corporate and investment bank in the Southeast and within its targeted industry specialties," Shufeldt said.

"While we've enjoyed our association with the talented professionals at R-H, the concept of a stand-alone, more narrowly-focused institutional business no longer fits with our long-term U.S. and global strategies," said Michael A. Carpenter, chairman and chief executive officer of Salomon Smith Barney. "Given SunTrust's strength and focus on the southeast market, this is a good fit for their business. We look forward to an ongoing relationship with them and wish SunTrust R-H Securities all the best."

Tom Tracy, currently chief executive officer of Robinson-Humphrey, has been named CEO of the Robinson Humphrey Equity Capital Markets division of SunTrust R-H Securities Inc. Tracy said, "Our goal is to play a dominant role in providing high quality investment services to our corporate and institutional clients. We look forward to working with our new SunTrust colleagues toward the continued realization of that objective."

SunTrust Banks, Inc., headquartered in Atlanta, Georgia, is the nation's ninth-largest commercial banking organization. As of March 31, 2001, SunTrust had total assets of $103.5 billion and total deposits of $65.5 billion. The company operates through an extensive distribution network in Alabama, Florida, Georgia, Maryland, Tennessee, Virginia and the District of Columbia and also serves customers in selected markets nationally. Its primary businesses include deposit, credit, and trust and investment services. Through various subsidiaries the company provides credit cards, mortgage banking, insurance, brokerage and capital markets services. Additional information may be found at http://www.suntrust.com/ .

Citigroup's Global Corporate and Investment Bank brings together Citibank, the world's most global corporate bank, and Salomon Smith Barney, a leading global investment bank and securities brokerage firm. Together they provide complete financial solutions to corporations, governments, institutions and individuals in 100 countries. Award-winning businesses include corporate and investment banking services, investment advice, financial planning and commercial insurance products.

Citigroup, the preeminent global financial services company, provides some 12 million consumers, corporations, governments and institutions in more than 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. Major brand names under Citigroup's trademark red umbrella are Citibank, CitiFinancial, Primerica, Salomon Smith Barney and Travelers. Additional information may be found at http://www.citigroup.com/ .

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SOURCE: SunTrust Banks, Inc.

Contact: Carolyn B. Gosselin of SunTrust Corporate Communications,
404-588-8677; or Susan Thomson of Salomon Smith Barney Corporate
Communications, 212-816-3411