Less than two months after completing two small acquisitions, People's United Financial Inc. in Bridgeport, Conn., has struck again.
The $25 billion-asset company announced late Thursday that it has agreed to buy Danvers Bancorp Inc. in Danvers, Mass., in a $493 million stock and cash deal. People's United said it would pay $23 in cash or 1.624 shares of its stock for each Danvers share, representing a 1.86x the seller's tangible book value.
People's United said in a press release that the price was based on Danvers' 10-day average closing stock price leading up to Jan. 19. On Thursday, the stock closed at $17.02 a share.
People's United said the deal would immediately add to earnings. The deal is expected to close in the second quarter. Jack Barnes, the president and chief executive at People's United, said in the press release that the acquisition deal filles out his company's Massachusetts presence.
In December, People's United completed the acquisitions of the $800 million-asset LSB Corp. in North Andover, Mass, and the $2.3 billion-asset Smithtown Bancorp Inc. in New York.
Also on Thursday, People's United reported that it earned $32 million in the fourth quarter, up 28.5% from a year earlier.
