Old National Announces Largest Partnership in Its History, Expands Into Wisconsin With AnchorBank Partnership
EVANSVILLE, Ind. and MADISON, Wis.–(GLOBE NEWSWIRE)–Evansville, Ind.-based Old National Bancorp (NASDAQ:ONB) (“Old National”) and Madison, Wisc.-based Anchor BanCorp Wisconsin Inc. (NASDAQ:ABCW) (“Anchor”), jointly announced today the execution of a definitive agreement under which Old National will acquire Anchor through a stock and cash merger.
With $2.2 billion in total assets, $1.5 billion in total loans, $1.8 billion in deposits, and $360 million in common shareholders’ equity as of Sept. 30, 2015, Anchor is a savings and loan holding company with AnchorBank, fsb (“AnchorBank”) as its wholly-owned subsidiary. Founded in 1919, AnchorBank operates 46 banking centers, including 32 banking centers in the Madison, Milwaukee and Fox Valley (Appleton, Neenah and Oshkosh) “triangle.” Twenty-one of these facilities are located in the capital city of Madison, home to the University of Wisconsin and one of the premier growth markets in the Midwest. This partnership marks a continuation of Old National’s strategy to focus the expansion of its franchise in demographically attractive and economically vibrant markets.
Founded in Evansville, Indiana in 1834, with $11.9 billion in total assets and 160 banking centers as of Sept. 30, 2015, Old National, the parent company of Old National Bank, is the largest financial services holding company headquartered in Indiana. When completed, this transaction will position Old National as the seventh largest deposit holder in the state of Wisconsin and the fifth largest in the Madison MSA.
Under the terms of the agreement, Anchor shareholders may elect to receive either 3.5505 shares of Old National common stock or $48.50 in cash for each share of Anchor they hold, subject to no more than 40% of the outstanding shares of Anchor may receive cash. Based on Old National’s 10-day average closing share price through January 8, 2016 of $13.34, this represents a total transaction value of approximately $461 million. The transaction value is likely to change until closing due to fluctuations in the price of Old National common stock and is also subject to adjustment under certain limited circumstances as provided in the merger agreement. The definitive merger agreement has been unanimously approved by the Board of Directors of both Old National and Anchor. The transaction remains subject to regulatory approval and the vote of Anchor shareholders. The transaction is anticipated to close in the second quarter of 2016.