-
C.G. Kum, the CEO of First California Financial Group, gave inconclusive answers to analysts' questions about whether the $2 billion-asset company can resist shareholder calls to seek buyer.
October 25 -
First California Financial Group is on the verge of announcing an agreement to sell itself, possibly to UnionBanCal or CVB Financial — and not hostile bidder PacWest, sources familiar with the matter say.
September 20 -
First California Financial Group (FCAL) — under pressure from activist investors to find a buyer — hired Keefe, Bruyette & Woods (KBW) to explore a sale or other strategic options.
August 1 -
The $5.4 billion-asset company's aggressive pursuit of First California and American Perspective may inspire others to abandon the traditional courtesies of the bank deals market.
May 9
First California Financial didn't have to look far to find a buyer, agreeing to sell to PacWest Bancorp in Los Angeles.
PacWest (PACW) will pay $231 million for the Westlake Village, Calif., company, or $8 a share, in an all-stock deal. First California (FCAL) had $2 billion in assets and 15 branches at Sept. 30.
PacWest had been
First California hired KBW's Keefe, Bruyette & Woods in August to
Expectations of a sale peaked in September, though sources viewed PacWest as a long shot because First California's board had sought
"As a result of this transaction, two premier organizations will come together to create one of the leading commercial banks headquartered in Los Angeles," Kum said in a press release Tuesday. “The combined bank will continue to offer the same dedication and high-quality service both institutions are known for, while providing customers with an even greater array of products and higher lending limits. We also believe this transaction provides opportunity for future shareholder value."
"We are very pleased to have reached this agreement," Matt Wagner, PacWest's chief executive, said in the same release. “The merger of these two organizations will create a valuable franchise for the stockholders of both companies."
The transaction is expected to close by March 31 and would lift PacWest to $7.5 billion in assets with 81 branches throughout California.
PacWest has been aggressive in its consolidation efforts in California. In April, the company reached an agreement to buy American Perspective Bank in San Luis Obispo, Calif., trumping an agreement the seller had with Umpqua Holding (UMPQ).
Skadden, Arps, Slate, Meagher & Flom served as First California's legal counsel. Castle Creek Financial acted as financial advisor to PacWest, and Sandler O'Neill delivered a fairness opinion. Wachtell, Lipton, Rosen & Katz was PacWest's legal counsel.