The fourth-largest banking company in Spain has struck its first-ever bank deal in the United States — and it could be scouting for more.
Banco de Sabadell of Barcelona announced Wednesday that it has agreed to buy the $580 million-asset TransAtlantic Holding Corp. in Miami for $175 million in cash. Jose Oliu, Sabadell's chairman, indicated in a press release that the $86 billion-asset company would use TransAtlantic as a platform for further growth in Florida.
"The acquisition of TransAtlantic Bank is Banco Sabadell's first step in implementing our retail banking know-how in a market with attractive potential, which offers favorable conditions for growth and value creation," Mr. Oliu said.
Sabadell has had an international office in Miami since 1993, and it opened a branch there in 2005. It can accept deposits at the branch, but the Federal Deposit Insurance Corp. does not insure them.
Buying TransAtlantic would give Sabadell seven additional branches in one of the nation's most vibrant Spanish-speaking markets.
TransAtlantic, founded in 1984, would retain its name, and Miriam Lopez would remain its chairman and chief executive.
"We are confident that the financial strength of Sabadell will enhance our market position and promote even stronger growth and profitability," Ms. Lopez said in a press release.
The 125-year-old Sabadell would become the latest large Spanish banking company to gain a foothold in the mainland United States. Banco Bilbao Vizcaya Argentaria SA of Madrid became one of the largest banking companies in Texas by acquiring Texas Regional Bancshares Inc. of McAllen in November and State National Bancshares Inc. of Fort Worth on Jan. 3. Banco Santander Central Hispano SA, also of Madrid, bought a 19.8% stake in Sovereign Bancorp Inc. in May and has since increased its stake to 24.99%.
The TransAtlantic deal was the second in Miami announced this week. The $22 billion-asset Colonial Bank Group Inc. of Montgomery, Ala., said Tuesday that it would pay $317 million in cash and stock for the $1 billion-asset Commercial Bankshares Inc. of Miami.
Sabadell would pay 3.49 times TransAtlantic's book value. The announcement did not specify when the deal would close.
TransAtlantic has the No. 25 deposit share in the Miami area, according to FDIC statistics. The company is primarily a commercial lender. At the end of the third quarter 67% of its portfolio was in commercial real estate, and 16% was in commercial and industrial loans. It earned $6.7 million in the first three quarters of last year and $7.5 million in all of 2005.
