Summary
This 8-K filing from BB&T Corporation (then BB&T) announces the definitive agreement to acquire MidAmerica Bancorp of Louisville, Kentucky, for approximately $372.4 million. The acquisition is a strategic move by BB&T to expand its presence in the "economically vibrant" Louisville market, a key objective for the company as it aims to be among the top five financial institutions in every market it serves. This deal, announced concurrently with the acquisition of AREA Bancshares Corporation, is expected to significantly boost BB&T's market share in Kentucky. The transaction, valued at $32.57 per MidAmerica share, involves a mix of BB&T stock and cash. The acquisition is anticipated to be accretive to BB&T's earnings per share and enhance its strategic positioning in a growing region. MidAmerica Bancorp brings $1.8 billion in assets and 30 banking offices, complementing BB&T's existing footprint.
Key Highlights
- 1BB&T Corporation announced a definitive agreement to acquire MidAmerica Bancorp for $372.4 million.
- 2The acquisition is designed to expand BB&T's presence in the Louisville, Kentucky metropolitan statistical area.
- 3MidAmerica Bancorp has $1.8 billion in assets and operates 30 banking offices.
- 4The transaction terms include a cash and stock component: $8.13 cash and 0.7187 shares of BB&T stock per MidAmerica share.
- 5The deal is expected to be accretive to BB&T's earnings per share and meet its internal rate of return criteria.
- 6The acquisition, along with the concurrent acquisition of AREA Bancshares, significantly increases BB&T's market share in Kentucky, moving it to fourth place.
- 7The merger is subject to MidAmerica shareholder and regulatory approval, with an expected closing in the second quarter of 2002.