SYRACUSE — Community Bank System, Inc. (NYSE:CBU), through its subsidiary Benefit Plans Administrative Services, Inc. (BPAS), has reached an agreement to acquire the professional-services practice from EBS-RMSCO, Inc.
Community Bank System announced the acquisition on Thursday, but didn’t release any financial terms of the deal.
EBS-RMSCO, Inc., an employee-benefits and risk-management firm, is a subsidiary of the Rochester–based Lifetime Healthcare Companies.
Besides its local office at 115 Continuum Drive in Salina, EBS-RMSCO also operates offices in Rochester, Buffalo, and Albany, according to its website.
The professional-services practice provides actuarial valuation and consulting services to clients who sponsor pension and post-retirement medical and welfare plans.
The practice to be acquired provides defined benefit and post-retirement medical-benefit valuation services to 150 organizations, principally in New York, Community Bank System said in the news release.
Upon completion of this transaction, BPAS will generate more than $41 million in annual revenue, administer more than 3,600 plans with 350,000 participants, and provide custodial services to $13.5 billion in assets, the company said.
Community Bank System didn’t indicate when it expects to close on the acquisition.
The transaction represents a “very attractive opportunity” for the company, Mark Tryniski, president and CEO of Community Bank System, said in the news release.
“Our employee-benefits administration business continues to grow through organic and acquisition strategies, expanding its national footprint, diversifying its service offerings, and providing meaningful returns. We look forward to welcoming these new clients, assuring them of our commitment to pro-active actuarial consulting and introducing them to our broader array of services,” Tryniski said.
“We expect to continue servicing many of these same clients,” Naylon said.
BPAS has three principal subsidiaries that include Benefit Plans Administrative Services, LLC; Harbridge Consulting Group, LLC of Syracuse; and Hand Benefits & Trust Company of Houston.
It employs 240 people and provides daily valuation, actuarial and employee-benefit consulting (VEBA / HRA) and employee-benefit trust services to clients nationwide.
HRA VEBA Trust offers a funded health-reimbursement arrangement (HRA) plan available to governmental employers in Washington, Oregon, and Idaho, according to its website.
Harbridge plans to hire the entire service team from the acquired actuarial practice and BPAS will open an office in Rochester to accommodate the new employees and expanded practice area, the company said.
BPAS operates offices in Syracuse, Utica, and New York; East Hanover, N.J.; along with Pittsburgh, Philadelphia, Houston, and San Juan, Puerto Rico.
Headquartered in DeWitt, Community Bank System has $7.3 billion in assets and more than 180 branch offices.
The company’s banking subsidiary, Community Bank, N.A., operates across upstate New York and northeastern Pennsylvania.
Besides BPAS, its other subsidiaries include the CBNA Insurance Agency, with offices in five northern New York communities; Community Investment Services, Inc., a wealth-management firm delivering financial products throughout the company’s branch network; and Nottingham Advisors, an investment management and advisory firm, Community Bank System said.
Contact Reinhardt at ereinhardt@cnybj.com