North Dakota-based Alerus Financial plans to keep Albert Lea staff

A multi-billion dollar financial services company headquartered in Grand Forks, North Dakota, is purchasing the employee benefit administration and record keeping of Alliance Benefit Group North Central States Inc. in Albert Lea.

Effective the beginning of 2016, the services will be under Alerus Financial, and Alerus will own the company’s building at 201 E. Clark St., at the corner of Clark Street and Newton Avenue.

Alliance Benefit Group leaders said Alerus wants to retain the staff in Albert Lea and has resources to support dramatic growth on a national scale.

“ABGNCS and Alerus are a great fit,” states a letter from CEO Brad Arends, ABGNCS President Steven Pulley and ABGFS President Grant Arends. “We share similar business goals and basic core values.”

Though Alliance Benefit Group is often referred to as one organization, it is made up of three separate companies: Alliance Benefit Group Financial Services Corp., Alliance Benefit Group of Kansas City Inc. and Alliance Benefit Group North Central States Inc. This transaction is for the latter — which includes the record keeping, administration and payroll services division of the organization.

ABGNCS will merge into Alerus’ retirement division, which operates as Alerus Retirement Solutions. Pulley will be the president of the health and payroll services hub.

Employee benefits consulting, investment advisory and personal wealth management divisions are not being sold and will continue to be owned by the Arends brothers. This company, known as Alliance Benefit Group Financial Services Corp., has about 20 employees who will move to a new location that has not yet been disclosed.

“We are excited,” Brad Arends said. “There’s growth potential out there.”

Alerus, a publicly held company, is a federally chartered bank with trust and custodial powers, which has been providing retirement plan services since 1944. It serves more than 280,000 plan participants through more than 5,000 plans in 49 states, according to a company fact sheet. It serves over $17.4 billion in retirement plan assets.

This will be the largest retirement services-related acquisition in Alerus’ history, adding new services to the company’s portfolio, including payroll, health savings accounts, flexible spending accounts, health reimbursement arrangements and COBRA services. It will increase the number of Alerus Retirement Solutions employees by 50 percent.

“They are committed to being the premier retirement plan record keeper utilized by advisers across the country for their clients’ retirement plan needs,” the letter states about Alerus.

“This is a fairly unique opportunity where we can stay active in the consulting and investment advisory business and yet give our administration staff and local community a real opportunity for a bright future.”

ABG started in the 1970s by Arends’ father, Al Arends, and his business partner. It has grown from only a few employees to a combined 140 employees.

Brad Arends said, though the closing is slated for January, it may take until June to update the phone, web and other technology to the new company.