In order to enhance its presence in Southern California,
) announced its entering into a definitive agreement to purchase
). The deal has been approved by independent directors of both
the banks and is expected to be completed in the first quarter of
CAPITALSOURCE (CSE): Free Stock Analysis
GOLDMAN SACHS (GS): Free Stock Analysis
HUDSON CITY BCP (HCBK): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
M&T BANK CORP (MTB): Free Stock Analysis
PACWEST BANCORP (PACW): Free Stock Analysis
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The deal has been sealed for approximately $2.29 billion in stock
and cash. As per the deal, stockholders of CapitalSource would
receive $2.47 in cash and 0.2837 of PacWest's common shares for
each share held. Moreover, on completion of the deal, the total
assets of the combined bank would have approximately $15.4
billion along with 96 bank branches in California.
Moreover, the combined bank would have 13 directors, comprising 8
directors from PacWest and 5 from CapitalSource. Further,
the combined bank would be headed by Matt Wagner, Chief Executive
Officer (CEO) of PacWest and James Pieczynski, CEO of
It is also anticipated that the deal will add 18% to the earnings
per share of the combined entity in 2015.
The lead financial adviser for CapitalSource was
JPMorgan Chase & Co.
) and PacWest was advised by Jefferies Group LLC,
Goldman Sachs Group Inc.
) and Castle Creek Financial LLC. Moreover, the legal counsel for
CapitalSource was Wachtell Lipton Rosen & Katz and Sullivan
& Cromwell LLP for PacWest.
Earlier in May 2013, PacWest completed the acquisition of First
California Financial Group, Inc. for roughly $231.0 million in an
This is the second largest acquisition of a regional bank after
M&T Bank Corporation
) agreed to purchase
Hudson City Bancorp, Inc
) in Aug 2012. The deal was sealed for $3.7 billion.
This deal is expected to strengthen PacWest's presence in middle
market lending. Moreover, this merger will help boost top-line
growth, thus proving accretive to the financials of the company