(Reuters) - United Bankshares Inc (UBSI.O) said on Monday it would buy CresCom Bank parent Carolina Financial Corp (CARO.O) in a deal valued at $1.1 billion, expanding its banking network in North and South Carolina.
Carolina shareholders will get 1.13 United shares for each share they hold, the companies said. (reut.rs/2Otne0W)
The deal represents a premium of about 16% based on Friday’s close, according to Reuters calculations.
“This transaction represents a significant step towards continuing to grow United’s presence in the Carolinas,” United Chief Executive Officer Richard Adams said.
Carolina Financial Chief Executive Officer Jerry Rexroad will join United Bankshares as a board member and executive officer. United Bankshares has dual headquarters in Washington DC and West Virginia.
The deal, expected to close in the second quarter of 2020, will create an entity with about $25 billion in assets and the merger has been unanimously approved by the boards of both the companies.
Sandler O’Neill served as financial adviser to United Bankshares, while Raymond James advised Carolina Financial.
Reporting by Bharath Manjesh in Bengaluru; Editing by Anil D'Silva and Shounak Dasgupta