TD Banknorth’s $1.9 Billion Deal With Hudson United Bancorp
TD Banknorth and Hudson United Bancorp have announced that TD Banknorth will acquire Hudson United for approximately $1.9 billion in cash and TD Banknorth stock.
The transaction is expected to result in a regional financial services company with 590 branches, 751 ATMs and over $26 billion in deposits across 8 northeastern states.
“This acquisition is consistent with our growth strategy and will significantly expand our franchise in both Connecticut and eastern New York while providing us with a presence in the fast-growing markets of New Jersey and Philadelphia,” said TD Banknorth Chairman, President and CEO William J. Ryan. According to a press release,
Based on the closing price of the TD Banknorth common stock on July 11, 2005, the deal is valued at $42.78 per Hudson United share and the aggregate merger consideration consists of approximately 51% TD Banknorth common stock and 49% cash. It is anticipated that the common stock consideration received in the transaction will be tax-free to Hudson United shareholders.
The cash for the transaction will be financed through TD Banknorth’s sale of approximately 29.6 million shares of TD Banknorth common stock to TD Banknorth’s majority stockholder, TD Bank Financial Group, at a price of $31.79 per share.
“We are excited about joining TD Banknorth,” said Kenneth Neilson, Hudson United’s Chairman, President and CEO. “This transaction rewards our shareholders while maintaining our focus on local community banking.”
As part of the deal, TD Banknorth’s Board of directors will gain two new members, both of which come from Hudson United.
“We are pleased to support Bill Ryan and his team in this strategic acquisition,” said Ed Clark, President and CEO of TD Bank Financial Group. “This transaction delivers on our shared vision for growth and marks a significant milestone in TD Banknorth’s expansion strategy.”
The deal is exepected to close in the first quarter of next year. It is still subject to approval by shareholders of both companies as well as other customary regulatory approvals.