Berkshire Hills Bancorp, the parent company of Berkshire Bank, and Brookline Bancorp, the parent company of Brookline Bank, Bank Rhode Island and PCSB Bank, entered into a definitive agreement pursuant to which Brookline will merge with and into Berkshire in an all-stock transaction valued at approximately $1.1 billion, or $12.68 per share of Brookline common stock, based on the $30.20 closing price of Berkshire common stock on Dec. 13, 2024.
In conjunction with the planned merger, Berkshire also entered into subscription agreements with investors to raise capital to support the merger. In aggregate, $100 million of Berkshire common stock will be issued at $29.00 per share. The capital raise is expected to close on Dec. 19, 2024. The proceeds of the capital raise are expected to support the pro forma bank’s balance sheet and regulatory capital ratios.
“Today marks a transformational milestone in the history of two storied institutions with a strong commitment to serving their clients and communities,” Nitin J. Mhatre, president and CEO of Berkshire, said. “The combined organization will be in an even stronger position to deliver exceptional client experience and create greater value for shareholders.”
“This transaction presents an opportunity to bring together two historic franchises in the Northeast market,” Paul A. Perrault, chairman and CEO of Brookline, said. “By bringing together two complementary cultures and geographic footprints with shared values and client focus, we will be better positioned to serve our customers, employees, communities and shareholders.”
“This highly compelling combination is a true merger of equals that will create a preeminent northeast financial institution,” David Brunelle, chairperson of Berkshire, said. “Scale and efficiency combined with our shared culture of true community banking is a powerful driver of value for all of our stakeholders.”
