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State Bank and Trust to acquire AloStar
Posted on Friday, 16 June 2017 13:55
State Bank and Trust Company, a subsidiary of State Bank Financial, has inked an agreement to purchase US banking firm AloStar Bank of Commerce for roughly USD 196.00 million in cash.
The deal is expected to positively impact the group’s earnings per share in 2018 and 2019.
AloStar had total assets worth around USD 944.00 million as of 31st March 2017.
The target was incorporated in 2011 through the purchase of Alabama-headquartered Nexity Bank.
Commenting on the acquisition, chief executive of State Bank, stated: “This merger adds a complementary lender finance line of business and scalable asset-based lending platform, which will further diversify our loan portfolio.
“In addition, the all cash consideration provides meaningful earnings accretion while efficiently leveraging our excess capital".
The boards of both State Bank and AloStar have approved the takeover, while the latter’s shareholders have also given the deal the green light.
Barclays Capital and Nelson Mullins Riley & Scarborough are both advising the acquiror on the acquisition, while Keefe Bruyette & Woods and Skadden Arps Slate Meagher & Flom are assisting the target.
Closing is expected in the fourth quarter of 2017, subject to the usual raft of conditions, including the green light from certain regulatory bodies.
Georgia-headquartered State Bank operates 31 full-service banking offices and had assets worth USD 4.20 billion as of 31st March 2017.
There have been 134 deals targeting US commercial banks announced worldwide since the beginning of 2017, according to Zephyr, the M&A database published by Bureau van Dijk.
The most valuable of these was Canadian Imperial Bank of Commerce’s USD 4.90 billion agreement to snap up PrivateBancorp via CIBC Holdco in May in an acquisition which is expected to complete in June 2017.
Other targets include Capital Bank Financial, Astoria Financial and Sabadell United Bank National.
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