Investors Bancorp wraps up Marathon Banking Corp buy.
M2 EQUITYBITES-October 17, 2012-Investors Bancorp wraps up Marathon Banking Corp buy(C)2012 M2 COMMUNICATIONS http://www.m2.com
17 October 2012 - US Investors Bancorp Inc (NASDAQ: ISBC), the parent of Investors Bank, has finalised its acquisition of Marathon Banking Corp, which operates via unit Marathon National Bank of New York, the parties said.
The definitive agreement on the deal, in which vendor was Greek lender Piraeus Bank SA, was announced on 14 June 2012. Under the terms of the accord, Investors Bancorp bought Marathon Banking Corp for USD135m (EUR103.2m) in cash. No information on the financing of the acquisition was provided.
The move is in line with Investors Bancorp's plan to become a full-service commercial lender and enlarge its footprint in New York, the buyer's president and CEO, Kevin Cummings, had said. After the addition of Marathon National Bank of New York's 13 full-service locations in the New York metropolitan area, Investors Bancorp has 22 New York branches, which account for 22% of its network.
The merged entity has a total of 100 branch locations, some USD12.4bn in assets and USD8.7bn in deposits.
Investors Bancorp expects its GAAP earnings for next year, before acquisition charges, to grow by 5% as a result of the deal and to increase by 7% in 2014.
Investors Bancorp hired RBC Capital Markets LLC advisor on the takeover and Luse Gorman Pomerenk & Schick PC - legal counsel. Besides, Stifel Nicolaus Weisel provided a fairness opinion to the buyer.
Keefe Bruyette & Woods served as financial advisor to the seller and Linklaters advised it on the legal matters.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Oct 17, 2012|
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