Banking, finance, and taxes
People's United Financial Moves to Acquire Suffolk Bancorp
Published:
Last Updated:
Suffolk Bancorp (NYSE: SCNB) saw its shares rise over 25% on Monday morning following an acquisition agreement with People’s United Financial Inc. (NASDAQ: PBCT). The companies announced a definitive agreement where People’s United will acquire Suffolk in an all-stock transaction valued at roughly $402 million.
The transaction is subject to customary closing conditions, as well as regulatory and shareholder approval. The transaction is expected to close late in the fourth quarter of 2016.
Under the terms of the agreement, Suffolk shareholders will receive 2.225 shares of People’s United Financial stock for each Suffolk Bancorp share. The transaction is valued at $33.55 per Suffolk Bancorp share, based on the closing price of People’s United’s common stock on June 24.
People’s United expects the transaction to be accretive to earnings, excluding one-time costs, with an internal rate of return of approximately 17% and a tangible book value earn-back under five years.
Jack Barnes, President and CEO of People’s United, commented:
We are proud to welcome Suffolk County National Bank to People’s United Bank. With the 9th largest market share in Suffolk County, a solid relationship-banking approach and loyal, long-tenured customers, Suffolk County National Bank’s strong Long Island presence complements our previous acquisitions and organic growth in the New York Metro area.
Howard C. Bluver, President and CEO of Suffolk, added:
The highly regarded People’s United brand, broad range of products and services and unique positioning across several attractive markets will benefit Suffolk Bancorp shareholders, customers and employees alike. It is also clear to me that our respective community-oriented cultures, devotion to the highest levels of customer service and conservative risk management philosophies align perfectly. We look forward to leveraging the strengths of our combined organizations to create additional value for all of our current and future stakeholders.
Shares of People’s United were last trading down about 6% at $14.12, with a consensus analyst price target of $14.94 and a 52-week trading range of $13.62 to $16.95,
Suffolk shares were last trading up over 27% at $29.91, with a consensus analyst price target of $29.75 and a 52-week trading range of $22.88 to $31.75.
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.