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Webster To Pay $30M for North American
Promises to minimize negative employment impact
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Business New Haven
6/11/2003
By:
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WATERBURY - Webster Financial Corp. announced June 5 a definitive agreement to acquire North American Bank & Trust Co. in a combination cash-and-stock transaction valued at approximately $30 million, or $11.25 per common share of North American stock.
North American is a state-chartered commercial bank with $195 million in assets. Trading on the NASDAQ exchange under the ticker symbol NAMB, is has eight offices in Stratford, Waterbury, Monroe, Bristol, Wolcott and Wethersfield.
In the acquisition, NAMB shareholders will receive 0.1503 shares of Webster common stock and $5.625 in cash for each share of North American common stock.
The purchase price is approximately 1.9 times North American's tangible book value and represents a 9.6-percent deposit premium.
Webster Financial is the holding company for Webster Bank and Webster Insurance. It is also majority owner of Chicago-based Duff & Phelps, a financial advisory firm, and owns Whitehall Business Credit Corp. and Center Capital Corp.
"Webster's partnership with North American Bank advances our highly compatible strategies and creates intrinsic value for our collective shareholders," announced Webster Chairman and CEO James C. Smith.
"Considering our shared commitment to providing exceptional service to our customers, Webster is our natural partner," added North American President and CEO Fielding Moore.
Webster President and Chief Operating Officer William T. Bromage said his company would take measures to minimize the employment impact of the acquisition.
"When two institutions of the same industry merge to form a stronger single company, a duplication of jobs and overlapping of tasks inevitably occurs," Bromage said. "Webster has committed to offer positions to all of North American's branch employees and to seek to fill Webster's open positions with other North American employees."
The agreement, which was approved unanimously by North American's board of directors, remains subject to approval by regulatory authorities and NAMB shareholders. Webster officials say they expect the deal to close some time in the fourth quarter.
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