Comprehensive M&A data with integrated detailed company information

Civista to acquire United Community Bancorp
Posted on Monday, 12 March 2018 14:03
Civista Bancshares, which is headquartered in Ohio, is buying Indiana-based rival United Community Bancorp in order to enter the Cincinnati metropolitan statistical area (MSA).

Completion is slated for the third quarter of 2018 and is subject to customary closing conditions, including approvals from shareholders and the relevant regulatory bodies.

The takeover, which can be valued at USD 114.40 million, is anticipated to immediately increase earnings in 2018.

At year-end 2017, the combined business would have assets totalling USD 2.10 billion, loans of USD 1.50 billion, and net deposits of USD 1.70 billion.

Civista owns the bank of the same name, which has 27 branches and two loan production offices in four of Ohio’s five MSAs, namely Akron, Cleveland, Columbus, and Dayton.

It is listed on Nasadaq and had a market capitalisation of USD 243.90 million at 9th March 2018, the last trading day prior to the announcement.

The purchase will provide the acquiror an entrance into Ohio’s biggest MSA, Cincinnati, which is also the 28th largest metropolitan economy in the US and home to over 2.10 million citizens and nine Fortune 500 firms.

Each share held in United will be exchanged for USD 2.54 in cash and 1.03 stocks in the buyer, which are worth around USD 23.75 apiece, based on its average close of USD 23.06 at 9th March.

This gives a maximum purchase price of USD 26.22 per scrip, representing a 29.8 per cent premium on United’s closing price of USD 20.20 on 9th March.

The Nasdaq-listed target is the holding company for United Community Bank, which has eight branches across southeastern Indiana, five of which are located in the Cincinnati MSA.

It had assets of USD 546.22 million and loans of USD 928.00 million as of 31st December 2017.

President EG McLaughlin said the acquisition would “accelerate the commercial loan production efforts that we have undertaken in the greater Cincinnati market”.

© Zephus Ltd