NorthStar Bancshares Inc. of Kansas City, Mo., has agreed to sell itself to Enterprise Financial Services Corp. of Clayton for $36 million in cash and stock.
The deal, which Enterprise announced Thursday, would more than double its branch network in the Kansas City area. The $192 million-asset NorthStar has four branches in Missouri and one in Overland Park, Kan. The $1.3 billion-asset Enterprise has two branches in the Kansas City area and five in and around St. Louis.
The price is equal to about 2.25 times NorthStar's book value. The deal is expected to close in the third quarter.
Mercantile Bancorp Inc. of Quincy, Ill., which owns a 19.6% stake in NorthStar, said Thursday that it expects to receive about $6.6 million of cash and stock in connection with the deal. Mercantile expects to receive approximately 20% of the money in cash, which it would use to reduce debt, make investments, and for general corporate purposes. It plans to keep the Enterprise stock as an investment.
