Crescent Financial (CRFN) to Acquire ECB Bancorp (ECBE) in $51.6M Deal
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Crescent Financial Bancshares, Inc. (Nasdaq: CRFN) and ECB Bancorp, Inc. (AMEX: ECBE) jointly announced today the signing of a definitive merger agreement under which Crescent Financial will acquire ECB Bancorp, Inc. for $17.75 per share or approximately $51.6 million.
This is the second merger announcement for Crescent Financial Bancshares (Crescent State Bank) in recent months. In August, Crescent State Bank and VantageSouth Bank announced that they had entered into a definitive merger agreement in which VantageSouth Bank will merge into Crescent State Bank. This transaction is expected to close in the fourth quarter, at which time both banks will operate as VantageSouth Bank.
Upon completion of the transaction, the combined company will have approximately $2.0 billion in total assets, $1.7 billion in total deposits, $1.2 billion in total loans, and a network of 45 branches in North Carolina.
The merger agreement has been approved by the board of directors of each company. The transaction is expected to close in the first quarter of 2013 and is subject to customary conditions, including regulatory approvals and approval by both Crescent Financial and ECB Bancorp shareholders. At closing, ECB Bancorp will be merged into Crescent Financial and East Carolina Bank will subsequently operate as VantageSouth Bank.
Under the terms of the agreement, shareholders of ECB Bancorp, Inc. will receive 3.55 shares of CRFN for each share of ECBE common stock. The stock issuance is valued at approximately $51.6 million in the aggregate, based on 2,904,841 shares of ECBE common stock outstanding at $5.00 per CRFN share.
Keefe, Bruyette & Woods, Inc. served as financial advisor and Womble, Carlyle, Sandridge & Rice, LLP provided legal counsel to Crescent Financial Bancshares, Inc. Sandler O'Neill & Partners, L.P. served as financial advisor and Kilpatrick Townsend & Stockton, LLP served as legal counsel to ECB Bancorp, Inc.
This is the second merger announcement for Crescent Financial Bancshares (Crescent State Bank) in recent months. In August, Crescent State Bank and VantageSouth Bank announced that they had entered into a definitive merger agreement in which VantageSouth Bank will merge into Crescent State Bank. This transaction is expected to close in the fourth quarter, at which time both banks will operate as VantageSouth Bank.
Upon completion of the transaction, the combined company will have approximately $2.0 billion in total assets, $1.7 billion in total deposits, $1.2 billion in total loans, and a network of 45 branches in North Carolina.
The merger agreement has been approved by the board of directors of each company. The transaction is expected to close in the first quarter of 2013 and is subject to customary conditions, including regulatory approvals and approval by both Crescent Financial and ECB Bancorp shareholders. At closing, ECB Bancorp will be merged into Crescent Financial and East Carolina Bank will subsequently operate as VantageSouth Bank.
Under the terms of the agreement, shareholders of ECB Bancorp, Inc. will receive 3.55 shares of CRFN for each share of ECBE common stock. The stock issuance is valued at approximately $51.6 million in the aggregate, based on 2,904,841 shares of ECBE common stock outstanding at $5.00 per CRFN share.
Keefe, Bruyette & Woods, Inc. served as financial advisor and Womble, Carlyle, Sandridge & Rice, LLP provided legal counsel to Crescent Financial Bancshares, Inc. Sandler O'Neill & Partners, L.P. served as financial advisor and Kilpatrick Townsend & Stockton, LLP served as legal counsel to ECB Bancorp, Inc.
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