July 15 (Reuters) - MB Financial Inc said it would buy Taylor Capital Group Inc for about $680 million in a cash and stock deal that is expected to double the company’s commercial banking market share in the Chicago area.
MB Financial’s offer of $22 per share, represents a premium of 26 percent to Taylor Capital Group’s Friday closing price.
Taylor Capital shareholders will get 0.64318 shares of MB Financial and $4.08 in cash for each Taylor Capital Group share.
The merger is expected to immediately add to MB Financial’s annual GAAP and cash earnings.
After the acquisition, MB Financial is expected to have “a top-10 deposit market share ranking in the Chicago MSA and top-5 deposit market share ranking in Cook County,” the bank said in a statement.
The deal is expected to close in the first half of 2014.
MB Financial offers financial services mainly to small and middle market businesses and individuals.
Taylor Capital Group a holding company of Cole Taylor Bank , owns nine branches in the Chicago area, which will be added to MB Financial’s existing 85 branches.
JPMorgan Securities LLC is acting as financial advisor and Silver, Freedman & Taff LLP as legal counsel to MB Financial.
Sandler O‘Neill & Partners LP and Barack Ferrazzano Kirschbaum & Nagelberg LLP is acting as legal counsel to Taylor Capital.