From EArlier: Berkshire Hills Bancorp To Acquire Beacon Federal Bancorp for $132M
Berkshire Hills Bancorp, Inc. (NASDAQ: BHLB) and Beacon Federal Bancorp, Inc. (NASDAQ: BFED) announced today that they have signed a definitive merger agreement under which Berkshire will acquire Beacon in a transaction valued at approximately $132 million. Under the agreement, Beacon's subsidiary bank, Beacon Federal, will be merged into Berkshire Bank, America's Most Exciting Bank(SM).
Beacon is headquartered in East Syracuse, New York and operates seven full service offices with deposits totaling $677 million at March 31, 2012. The majority of its business is concentrated in the Syracuse market, as well as the Rome/Utica market which Berkshire entered last year with the acquisition of Rome Bancorp. When the merger is completed, Berkshire will have a total of ten branches serving these markets, with approximately $700 million in deposits and third position in market share among regional banks. Additionally, Berkshire will add Beacon's Chelmsford, Massachusetts office located north of Boston, which will be Berkshire's first Eastern Massachusetts full service branch office, complementing the ten residential and commercial lending offices that Berkshire presently operates in Central/Eastern Massachusetts.
Under the terms of the merger agreement, 50% of the outstanding Beacon shares will be exchanged for Berkshire shares at a fixed exchange ratio of 0.92 shares for each Beacon share, while the remaining 50% of Beacon shares will be exchanged for cash in the amount of $20.50 per share. The transaction is valued at $20.35 per Beacon share, based on the $21.96 Berkshire closing stock price on May 30, 2012. This represents 111% of Beacon's tangible book value per share and a 3.4% premium to core deposits based on financial information for the period ended March 31, 2012.
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