First Niagara to sell 37 HSBC branches to KeyCorp for $110m

The sale includes the 26 branches in the Buffalo, New York area in order to gain approval from the US Justice Department for its purchase of 195 branches in HSBC’s US network.

First Niagara president and CEO John Koelmel said that they’re delivering on the plan we shared when we announced the HSBC-branch acquisition last year, in spite of the very challenging operating environment.

"The outcome will be another significant and positive step toward realizing our vision for establishing a regional leadership position in the northeast," added Koelmel.

First Niagara was advised by the investment banking firm of Sandler O’Neill & Partners, as well as Goldman Sachs & Co., and the law firm of Pepper Hamilton, as well as Sullivan Cromwell.

In July 2011, First Niagara Bank has acquired 195 HSBC retail branches, primarily in Upstate New York, for $1bn.

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