IberiaBank Corporation announced this week that it has signed a definitive agreement to acquire Sabadell United Bank from Banco de Sabadell in a stock and cash transaction valued at $1 billion. The deal significantly strengthens the Lafayette-based financial institution's Florida franchise, marking its first expansion into Miami-Dade County and making the Sunshine State its largest franchise in terms of deposits.
The proposed acquisition is expected to close in the second half of 2017. Upon completion of the acquisition, Sabadell United will be merged with and into IberiaBank.
Under the terms of the agreement, IBKC will purchase Sabadell United for $803 million in cash and approximately 2.61 million IBKC shares, valued at $222 million based on a 10-day VWAP through Feb. 24, 2017. IBKC expects to finance the cash portion of the transaction, in part, through a public common stock offering of approximately $500 million. In addition, IBKC plans to use the $280 million net proceeds of the December 2016 common equity sale to support the acquisition. Banco Sabadell will own approximately 4.9 percent of IBKC common stock at transaction close.
“With a population of over six million people, the greater Miami area is a dynamic market with a strong concentration of commercial and industrial clients that are particularly attractive to us,” Daryl G. Byrd, president and CEO of IBKC, said in a press release announcing the deal. “With this acquisition, our company will have a meaningful presence in each of the five largest markets in the Southeast, further solidifying our status as a premier Southeastern banking franchise.”
Sabadell United Bank, a subsidiary of Banco de Sabadell (headquartered in Barcelona, Spain), was organized in 1974 as a nationally chartered commercial bank. Sabadell United is headquartered in Miami and has assets of $5.8 billion.
IberiaBank Corporation, which had assets of $21.7 billion at the end of 2016, has 304 combined locations, including 199 bank branch offices and three loan production offices in Louisiana, Arkansas, Alabama, Tennessee, Texas, Florida, and Georgia, 24 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 69 locations in 10 states.
Read the full release here.