Investment Banking - Park National Corporation

Transactions | Banking

Client: Park National Corporation
Industry: Banking
Transaction Type: Mergers & Acquisitions
Role: Buy-Side Advisor

  • Headquartered in Newark, Ohio, Park National Corporation had $7.5 billion in total assets (as of December 31, 2017). The Park organization principally consists of 11 community bank divisions, a non-bank subsidiary and two specialty finance companies.
  • NewDominion holds $338 million in assets (as of December 31, 2017) and operates two banking offices, in downtown Charlotte and Mooresville, North Carolina. At December 31, 2017, it had $282 million in deposits and $284 million in loans. NewDominion will keep its name and become a community bank division of Park National Bank.
  • In November 2016, Park made a friendly investment of $3.5 million in NewDominion, giving Park 8.55% current ownership of NewDominion’s outstanding common stock at $0.54 per share.
  • Under the terms of the merger agreement, Park will pay $76.4 million to acquire the remaining 91.45% of NewDominion shares and options. ​
  • NewDominion shareholders can elect to receive either 0.01023 shares of Park common stock or $1.08 in cash for each share of NewDominion common stock owned, subject to proration such that the total consideration related to this transaction will consist of approximately 60 percent Park common stock and 40 percent cash.
  • In aggregate, Park will have paid a blended price per share of approximately $1.03 to acquire 100% of the stock of NewDominion.
  • The transaction is projected to be accretive to EPS by 1.6% in 2019 and 3.7% in 2020 with a tangible book value earn-back of approximately 4.2 years.
  • The transaction closed Q3 2018.
  • Boenning served as financial advisor and issued a fairness opinion to Park National Corporation.