The deal has been executed based on United Financial Bancorp’s 20 day volume weighted average stock price of $15.89 per share as of 30 May 2012 and excluding shares used to terminate New England Bank’s employee stock ownership plan.
The recent takeover of New England Bancshares will enable United Financial Bancorp to append almost $726.5m in total assets, $557.9m in gross loans and $581.6m in total deposits before acquisition accounting adjustments.
According to the terms of the transition, each share of New England Bancshares common stock will be converted into the right to receive 0.9575 of a share of United Financial Bancorp common stock.
The transaction represents 163% of New England Bancshares’ tangible book value and a core deposit premium of 7.4% as at 31 March 2012.
The acquirer said that the deal will assist it to enhance its business into Hartford, Tolland, New Haven and Litchfield Counties in Connecticut, where New England Bank operates fifteen full-service banking offices and two administrative offices.
Expressing his views in adding the new firm in business bouquet, United Financial chairman of the board, president and chief executive officer BaRichard Collins said that the combination presents a tremendous opportunity to expand their presence in Connecticut, where United Bank does not currently maintain any branches.
"Connecticut is an attractive and growing banking market and one we have had our eye on for some time. Like us, New England Bancshares has deep roots in the communities it serves, and we look forward to introducing our brand of banking to this region," Collins added.
The deal is believed to close during the fourth quarter of 2012, subject to certain conditions including the approval by United Financial Bancorp’s and New England Bancshares’ stockholders and customary regulatory approvals.
Stifel Nicolaus Weisel served as financial advisor to United Financial Bancorp and Kilpatrick Townsend & Stockton worked as United Financial Bancorp’s legal counsel.
FinPro Capital Advisors acted as financial advisor to New England Bancshares and Luse Gorman Pomerenk & Schick served as its legal counsel.
