Investment Banking - Camco Financial Corporation

Transactions | Banking

Client: Camco Financial Corporation
Industry: Banking
Transaction Type: Mergers & Acquisitions
Role: Sell-Side Advisor

  • Camco Financial Corporation (NASDAQ: CAFI) was the $757 million holding company for Cambridge, Ohio-based Advantage Bank. Advantage Bank had 22 offices in Ohio, Kentucky and West Virginia.
  • Huntington Bancshares Incorporated (NASDAQ: HBAN) is a $56 billion regional bank holding company headquartered in Columbus, Ohio with branches in Ohio, Michigan, Pennsylvania, Indiana, West Virginia and Kentucky.
  • CAFI shareholders received consideration of $6.00 or 0.7264 shares of HBAN common stock. HBAN paid 80% of the Merger Consideration in HBAN stock and 20% in cash.
  • CAFI shareholders taking HBAN stock will see a dramatic increase in liquidity and receive a per share equivalent $0.15 annual dividend.  HBAN expects the deal to be accretive to 2014 earnings.
  • The total merger consideration is approximately $81.3 million, or $93.4 million including the impact of warrants and options. On a per share basis, excluding the value of the options and warrants, the purchase price is approximately 123% of tangible book value, 32.0x LTM core earnings and represents a one-day market premium of 53%.
  • Camco previously completed a $10 million common stock rights offering in November 2012 at $1.75 per share with warrants with a strike price of $2.10.
  • Boenning rendered a fairness opinion to Camco Financial Corporation.