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The combination of Mercantile and Firstbank is expected to break the bank M&A logjam in Michigan. The combined company will be on the lookout for more deals, executives say.
August 16 -
Mercantile Bank announced a deal Thursday that would make it the third-largest bank based in Michigan.
August 15 -
The Michigan company is set to raise up to $100 million if the right acquisition is available. Analysts say in an erratic M&A market, it is better to be ready to raise capital than to raise it and wait.
May 31
Is Chemical Financial (CHFC) in Midland, Mich., preparing for an acquisition?
The $5.8 billion-asset Chemical has begun a public offering of its common stock that seeks to raise $50 million, it announced Wednesday after the market closed. All of the shares are being offered by the company.
Chemical intends to use the offering proceeds for general corporate purposes, including funding loan growth or "long-term strategic opportunities that may arise in the future," its press release said.
The raise follows a $100 million shelf registration by the company in May. At the time Chief Financial Officer Lori Gwizdala said the registration did not mean an acquisition was imminent. Chemical just wanted to be in a position to move quickly should something materialize, she said.
"There haven't been any deals in Michigan so far in 2013, but we think it is going to happen," Gwizdala said in May. "There was no immediate need to raise capital, but with this sitting on the shelf we are ready should the right opportunity arise."
CEO David Ramaker did not immediately return a call seeking comment Wednesday.
In 2010, Chemical
Keefe, Bruyette & Woods is the sole book-running manager on the offering, while Raymond James and Sandler O'Neill are acting as co-managers. Donnelly, Penman & Partners is acting as selling group member.
