Daily News: September 13, 2012

FirstMerit to Acquire Citizens Republic

FirstMerit Corporation and Citizens Republic Bancorp, Inc. announced that they have entered into a definitive agreement under which FirstMerit will acquire Citizens in a stock-for-stock transaction with a total value of approximately $912 million based on FirstMerit’s average ten-day closing stock price ended September 12, 2012. The transaction creates a unique, contiguous Midwest banking franchise, expanding FirstMerit’s footprint into Michigan and Wisconsin, as well as strengthening its presence in Northeast Ohio.

Under the terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, Citizens’ shareholders will receive a fixed 1.37 shares of FirstMerit common stock in exchange for each share of Citizens’ common stock. Based on FirstMerit’s average ten-day closing stock price ended September 12, 2012, the implied value of a Citizens’ share would be $22.50.

Upon completion of the transaction, the combined company will have approximately:

  • $24 billion in total assets

  • $15 billion in loans

  • $19 billion in deposits

  • 415 branches, 452 ATMs and more than 5,000 employees across the five contiguous states of Pennsylvania, Ohio, Michigan, Illinois and Wisconsin

    Paul G. Greig, chairman, president and CEO of FirstMerit, will continue as chairman, president and CEO of the combined company. He has extensive experience in Wisconsin where he was president and CEO of the Wisconsin market for Bank One and Chase, from 1999 to 2005.

    To read the release in its entirety, click here.