Cleveland-based KeyCorp has acquired New York’s Union State Bank for $575 million. USB's 31 branches in New York's Hudson Valley will double KeyCorp's 32-office network in the area. "This is an important strategic acquisition that will significantly enhance our presence in attractive markets within and contiguous to our current operations," said Beth Mooney, Keycorp vice chairman and head of Key Community Banking. “We believe our specialties in small business, middle-market banking, private banking and wealth management will be an excellent fit in these markets." According to data provided by USB Holding, KeyCorp is paying about 2.4 times USB Holding's book value and about 17 times estimated 2008 earnings. USB Holding will add about $3 billion in assets to KeyCorp's $94 billion asset base. KeyCorp expects to close the deal within six months. In February, KeyCorp sold the branch network of McDonald Investments, its brokerage subsidiary, to Swiss giant UBS. The sale to UBS included 340 financial advisors and other support staff that worked in 51 offices in 14 states throughout the Northeast, Midwest, Rocky Mountain and Northwest. Key, which acquired McDonald Investments in 1998, retained its private banking, trust and wealth-management businesses as well as its institutional businesses.