Union First Market to acquire StellarOne
Richmond-based Union First Market Bankshares plans to acquire Charlottesville-based StellarOne in a $445.1 million stock deal, the companies announced Monday.
The move will create the largest community bank Virginia. Union will keep its name, and its corporate headquarters will remain in Richmond.
Union will operate in all major Virginia markets and will have the fifth-largest branch network in the commonwealth.
Under the terms of the agreement, common shareholders of StellarOne will receive 0.9739 shares of Union common stock for each share of StellarOne. This translates into $19.50 per share or approximately $445.1 million in the aggregate based on Union’s closing stock price of $20.02 on June 7.
Based on financials reported on March 31, 2013, the combined companies would have total assets of $7.1 billion, deposits of $5.8 billion and loans of $5.2 billion.
Union’s current executive management, led by chief executive officer G. William Beale, will form the core of the company’s leadership team. The Union board of directors will expand to 19 members, including 11 members from the current Union board and eight from the StellarOne board.
Current StellarOne Chairman Raymond D. Smoot, Jr. will serve as chairman of the combined company, and current Union Chairman Ronald L. Hicks will become vice chairman. O. R. Barham, Jr., president and CEO of StellarOne, will retire as previously announced, with his retirement effective upon closing of the merger.
The merger agreement has been unanimously approved by the board of directors of each company.
The companies expect to close the deal on or around Jan. 1, subject to normal closing conditions, including regulatory and shareholder approvals.