As per the agreement, StellarOne’s shareholders will receive 0.9739 shares of Union common stock for each share and based on Union’s closing stock price of $20.02 on 7 June 2013 aggregate value of the transaction stands at $445.1m.
After completion of transaction, the acquired enterprise will be merged and the integrated company will retain the Union brand name and corporate headquarters will remain located at Richmond.
The united firm will have total assets of $7.1bn, deposits of $5.8bn and loans of $5.2bn, based on financials reported on 31 March 2013 and will trade in all major Virginia markets.
Union First Market Bankshares CEO G William Beale said that the integration will allow growth and synergies to continue to deliver better customer experience, offer superior financial services and solutions and robust financial performance for its shareholders.
The Union board of directors, which will expand to 19 members, will have 11 members from the current Union Board and eight members from the StellarOne Board.
StellarOne current chairman Raymond D Smoot, Jr will work as chairman of the united firm and current Union chairman Ronald L Hicks will assume the post of vice chairman.
The transaction, which has already backed by the board of directors of both companies, is expected to complete on or around 1 January 2014, subject to customary closing conditions, including regulatory and shareholder approvals.
Keefe, Bruyette and Woods, LeClairRyan, Raymond James & Associates and Troutman Sanders acted as advisors to Union and StellarOne, respectively.
