Belgium-based RHJ International (RHJ), the diversified investment holding company yesterday reached an agreement with Germany's second-largest bank Commerzbank AG to buy its UK subsidiary Kleinwort Benson for £225 million ($368 million) in an all-cash deal, aiming to expand its European financial services business.

In a statement released yesterday, RHJ said it would acquire Kleinwort Benson Private Bank Limited and Kleinwort Benson Channel Islands Holdings Limited (together 'Kleinwort Benson') with its private banking, wealth management and fiduciary businesses from Commerzbank AG.

London-based Kleinwort Benson is a leading private bank that offers a wide range of financial services to retail and corporate clients throughout UK and Channel Islands. As at 31 December 2008, the businesses being acquired had total assets under management of £5.4 billion and fiduciary assets under administration of £15.7 billion.

RHJ said that it was attracted to Kleinwort Benson's exceptionally strong private banking franchise and excellent growth prospects, and expected that these businesses in UK and Channel Islands would form the basis of a strengthened financial services platform with a view to broader usage of the acquired brand.

RHJ chief executive, Leonhard Fischer said: ''Kleinwort Benson is an internationally respected brand in banking and with its private banking operation provides a first class service to its clients. This is an important strategic investment for RHJ in a very attractive market sector. Furthermore RHJ plans to adopt Kleinwort Benson as an overarching brand for its financial services businesses going forward.''

Robert Taylor, chief executive of Kleinwort Benson said: We are very pleased to have been acquired by a group whose leadership team has longstanding links with Kleinwort Benson. We look forward to working with our new owners to continue to grow our private banking business about which we are passionate.''