Investment Banking - Universal Bancorp
Transactions | Banking
Client: Universal Bancorp
Transaction Type: Mergers & Acquisitions
Role: Sell-Side Advisor
- Universal Bancorp is the $402.8 million holding company for BloomBank, headquartered in Bloomfield, Indiana. BloomBank was founded in 1873 as Bloomfield State Bank and operates 13 branches throughout central and southern Indiana, including two in Greater Indianapolis.
- MutualFirst Financial, Inc. (NASDAQ: MFSF) is the holding company for MutualBank, originally organized in 1889. MutualBank conducts business from its headquarters and main office in Muncie, Indiana, as well as 26 additional full-service retail financial centers throughout northern and central Indiana.
- Universal shareholders will be entitled to receive 15.6 shares of MFSF and $250.00 in cash for each common share of Universal. Based on MFSF’s closing stock price as of October 4, the total merger consideration is approximately $65.9 million. This represents 160.2% of Universal’s June 30, 2017 tangible book value and 23.9x Universal’s trailing twelve-month earnings through June 30, 2017.
- The merger is expected to be accretive to MFSF’s earnings per share in 2018 and with cost savings fully implemented in 2019 the accretion is projected to be approximately 13%. The tangible book value dilution at closing of 3.1% is expected to be earned back in approximately 2.2 years.
- The transaction is expected to close in the first quarter of 2018, pending receipt of regulatory approvals, the approval of the shareholders of Universal and other customary closing conditions.
- Boenning is serving as financial advisor and issued a fairness opinion to Universal Bancorp.