Financial services provider Trustmark Corp. (TRMK: Quote) announced Tuesday that it has signed a definitive agreement to acquire Alabama-based bank holding company BancTrust Financial Group, Inc. (BTFG: Quote).
As per the terms, BancTrust shareholders will receive 0.125 shares of Trustmark common stock for each share of BancTrust common stock in a tax-free exchange.
Based upon Trustmark's Friday closing price of $24.66 per share, the deal is valued at about $55.4 million or $3.08 per share of BancTrust common stock.
The transaction, which is expected to close during the fourth quarter of 2012, has been unanimously approved by the boards of directors of both the companies.
Gerard Host, president and chief executive officer of Trustmark said, "This is a strategic opportunity that will be meaningfully accretive to Trustmark's earnings per share in 2013 and beyond."
Trustmark will issue around 2.25 million shares of its common stock for all the issued and outstanding shares of BancTrust common stock.
Trustmark also intends to repurchase $50 million of BancTrust preferred stock and related warrant issued to the U. S. Department of Treasury under Capital Purchase Program.
BancTrust has 49 offices throughout Alabama and the Florida Panhandle. As of March 31, 2012, it had $1.3 billion in loans and $1.8 billion in deposits.
Commenting on the deal, Daniel Grafton, chairman of Trustmark stated, "This transaction provides an excellent opportunity for Trustmark to enhance its franchise by expanding into attractive Alabama markets, including Mobile and Montgomery, as well as increase scale in our existing Florida Panhandle markets."
The closing of the deal is subject to approval by regulatory authorities and BancTrust's shareholders, as well as certain other customary closing conditions.
Trustmark was advised by investment banking firm Sandler O'Neill + Partners, L.P., as well as law firm Wachtell, Lipton, Rosen & Katz. BancTrust was advised by investment banking firm Keefe, Bruyette & Woods, Inc., and law firms Hand Arendall and DLA Piper LLP (US).
TRMK closed Friday's regular trading at $24.66 on the Nasdaq, while BTFG ended at $1.83.
 | | To receive FREE breaking news email alerts for TRUSTMARK CORP and others in your portfolio |
|
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Business News