Old National Bancorp in Evansville, Ind., has agreed to buy Anchor BanCorp Wisconsin in Madison.
The $11.9 billion-asset Old National said in a press release Tuesday that it will pay $461 million in cash and stock for the $2.2 billion-asset Anchor. The deal, which is expected to close in the second quarter, values Anchor at 128% of its tangible book value.
The acquisition is the largest in Old National's history and allows it to enter Wisconsin. The sale also caps an amazing comeback for Anchor, which went through the bankruptcy process several years ago to recapitalize. Old National will gain $1.5 billion in loans, $1.8 billion in deposits and 46 branches through this deal.
"This partnership … is a natural extension of our franchise and our growth strategy," Old National President and Chief Executive Bob Jones said in the release. "Not only does it position Old National in strong, vibrant markets with proven growth potential, it also represents an exceptional cultural fit and an opportunity to continue the strong legacy of service that distinguishes AnchorBank."
Old National said in a
Old National expects to cut about 32% of Anchor's expense, while incurring $46.5 million in pretax merger-related charges.
Old National was advised by Stephens Inc. and Krieg DeVault. Anchor was advised by J.P. Morgan Securities and Skadden, Arps, Slate, Meagher & Flom.
Led by CEO Chris Bauer, one of American Banker's