WesBanco snaps up Ohio’s Premier Financial in $959m all-stock deal
West Virginia, US-based bank WesBanco has entered into a definitive agreement to merge with Ohio-based Premier Financial Corp, the holding company of Premier Bank, in a move that will make the combined entity the 8th largest bank in Ohio based on deposit market share.
WesBanco acquires Premier Financial in $959 million deal
The all-stock transaction, anticipated to finalise in Q1 2025, will grant Premier shareholders 0.80 shares of WesBanco common stock for each Premier share, with an aggregate merger value of around $959 million, or $26.66 per share, based on the West Virginia bank’s closing stock price of $33.32 on 24 July 2024.
To support the merger, $200 million of WesBanco common stock will be issued by the start of August. This will be funded by a capital raise which includes a $125 million contribution from US investors Wellington Management, along with additional backing from Klaros Capital and Glendon Capital Management.
Following the merger, Premier shareholders are expected to hold 30% of the newly combined bank’s shares, while the shares issued in the capital raise are expected to account for 8%.
Additionally, upon completion, four members from Premier’s current board of directors will join WesBanco’s board.
The combined entity will boast “approximately $27 billion in assets, significant economies of scale, and strong pro forma profitability metrics”, according to WesBanco.
Once the deal is completed, WesBanco, established in 1870, will operate over 250 financial centres, an increase of 73. The bank will also maintain loan production offices across nine states, with an expanded presence in southern Michigan and north-eastern Indiana.
WesBanco president and CEO Jeff Jackson says the “transformative merger” marks “another milestone in our long-term growth strategy”, adding the move will “bring together two high-caliber institutions to create a community-focused, regional financial services partner strongly positioned to serve the unique needs of both our new and legacy communities”.
