Lausanne-based group BCV - Banque Cantonale Vaudoise - has reached an agreement with Johnson Financial, headquartered in Racine, Wisconsin, to acquire Banque Franck Galland, which it will merge with its wealth management subsidiary Banque Piguet. The price of the transaction was not disclosed.

In August 2003 BCV had sold Banque Galland to Banque Franck to form Banque Franck Galland.

The new bank, to be called Banque Piguet Galland, will focus primarily on the Swiss market.

BPG will rank among the major private banks in French-speaking Switzerland and be one of the leading wealth managers in western Switzerland, with assets under management of SFr8 billion (just over $8 billion), BCV said in a statement.

The new owner is looking for savings of approximately SFr5-6 million per year. As the new bank will require approximately 160 staff, the headcount is expected to be reduced by around 30 over the long term, mainly through attrition.

The merger is in line with BCV's business development strategy, particularly in onshore wealth management, the bank said. BPG will be headquartered in Yverdon-les-Bains, with offices in Geneva, Lausanne, Neuchâtel, Nyon and Lugano. As part of its business development strategy, it will seek to expand its catchment area.

Johnson Financial Group is the holding company for Johnson Bank, which has over 50 offices in Wisconsin and Arizona. Group services include wealth management and private banking.