German American Bancorp in Jasper, Ind., has agreed to buy River Valley Bancorp in Madison, Ind.
The $2.3 billion-asset German American said in a press release Monday that it will pay $84 million, or $33 a share, in cash and stock for the $514 million-asset River Valley. The deal is expected to close early next year.
The merger “represents a strategic opportunity for German American to enhance our previously stated objective of expanding our southern Indiana footprint,” Mark Schroeder, the company’s chairman and chief executive, said in the release. River Valley also has operations near Louisville, Ky., where German American recently opened a loan-production office.
German American said it expects the deal to be accretive to its earnings per share during the 12 months after closing.
Raymond James and Bingham Greenebaum Doll advised German American. Keefe, Bruyette & Woods and Barnes & Thornburg advised River Valley.
