Citizens Financial Group to Acquire UST Corp.; Solidifies Citizens as New England's 2nd Largest Bank With Assets of $28 Billion and 1.5 Million Customers.PROVIDENCE, R.I.--(BUSINESS WIRE)--June 21, 1999-- Citizens Financial Group, Inc. ("Citizens"), a New England-based financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. group owned by the Royal Bank of Scotland
The Royal Bank of Scotland Plc (Scottish Gaelic: Banca Rìoghail na h-Alba plc., and UST USt Umsatzsteuer (German: Tax) UST Underground Storage Tank UST University of St. Thomas (Minnesota, Texas) UST University of Santo Tomas (Manila, Philippines) Corp. (traded on Nasdaq: USTB USTB University of Science and Technology Beijing (China) USTB Universitaets- und Stadtbibliothek (Germany) USTB Underground Storage Tank Branch ) today announced a definitive agreement under which Citizens will acquire UST Corp. in a cash transaction for $1.4 billion, or $32 per share. This acquisition, including Citizens' recently announced acquisition of State Street Corporation's commercial banking business, solidifies Citizens as the 2nd largest bank in New England with assets of $28 billion. This will be the 17th overall acquisition for Citizens Financial Group, Inc. since 1988. Neal F. Finnegan, UST Corp.'s President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , will become non-executive Chairman of Citizens Bank of Massachusetts The Bank of Massachusetts, founded in 1784 in Boston, Massachusetts, was the second-oldest bank in the United States. It is a predecessor to the modern Bank of America (merged 2005), through Bank of Boston (1903), BankBoston (1996) and FleetBoston Financial (1999). . In addition, he will become a director of Citizens Financial Group, Inc. Thomas J. Hollister, will continue as President & CEO of the newly combined Citizens Bank of Massachusetts which will grow from $8 billion (including the recently announced State Street transaction) to $14 billion in assets. Lawrence K. Fish, Citizens' Chairman, President & CEO said: "This transaction firmly establishes Citizens as the second largest bank in New England. It is a significant step in our mission to build Citizens into New England's finest bank for customers, employees, and the community." "Neal Finnegan and his team at UST have built a highly respected franchise in eastern Massachusetts with tremendous shareholder value. We look forward to combining the talents and resources of these two institutions to deepen our roots in New England," Fish said. Neal F. Finnegan, President & CEO of UST Corp. said: "I'm pleased that we are able to combine with a first-rate company that shares our core values. Larry Fish and his team at Citizens will strengthen our mission to provide quality service to our customers and our community." This acquisition will significantly expand Citizens' growing market presence in eastern Massachusetts and throughout New England. The combined entity will increase Citizens' deposits from $15.3 billion to $19.5 billion, and increase Citizens' loan portfolio from $12.5 billion to $16.9 billion. Citizens will have over 350 branches throughout New England, nearly 800 ATMs, and will be the 33rd largest bank in the country. Specifically in Massachusetts, this acquisition will: -- Grow Citizens' Massachusetts assets from $8 billion (including the recently announced $2 billion State Street transaction) to $14 billion. -- Increase Citizens' market share in key retail markets, including Middlesex, Norfolk and Suffolk counties where Citizens will be a strong number two in deposit market share. -- Expand Citizens' commercial loan portfolio in small business and middle market lending. The combined entity will have approximately 50,000 commercial customers. -- Bring several key lines of business to Citizens including investment management (United States Trust Company) and insurance brokerage (Brewer & Lord). Both of these companies will continue to operate autonomously. Goldman Sachs served as financial advisor to Citizens. Fox, Pit-Kelton served as financial advisor and provided a fairness opinion Fairness Opinion A report put together by qualified analysts or advisors providing to key decision makers an evaluation of and facts about a merger or acquisition. Notes: A fairness opinion serves as a document used for guidance in a merger, takeover, or acquisition. to UST Corp. Goodwin, Procter & Hoar LLP LLP - Lower Layer Protocol provided legal counsel for Citizens. Bingham Dana LLP provided legal counsel for UST Corp. Citizens Financial Group, Inc., is an $18.9 billion financial services company headquartered in Providence, RI. It operates as Citizens Bank in Connecticut, Massachusetts, New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). and Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. . Citizens is a wholly-owned subsidiary of The Royal Bank of Scotland, plc. For more information visit the Citizens Bank website at www.citizensbank.com. UST Corp. is a $5.9 billion Boston-based bank holding company with 87 banking offices in eastern Massachusetts. |
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