Pacific Premier Bancorp, the holding company of Pacific Premier Bank, agreed to acquire Grandpoint Bank’s holding company Grandpoint Capital in an all-stock transaction valued at approximately $641.2 million.
Under the terms of the definitive agreement, upon consummation of the transaction, holders of Grandpoint common stock will have the right to receive 0.4750 of a share of Pacific Premier common stock for each share of Grandpoint common stock they own.
Existing Pacific Premier shareholders will own approximately 75% of the outstanding shares of the combined company and Grandpoint shareholders are expected to own approximately 25%.
Pacific Premier expects the transaction to be immediately accretive to 2018 earnings per share, 8.6% accretive to earnings per share in 2019 and approximately 2.4% dilutive to tangible book value per share with a 1.2 year earn back period. The transaction will increase Pacific Premier’s total assets to approximately $11.7 billion on a pro forma basis and add 14 regional offices to their operations.
The transaction is expected to close in Q3/18, subject to customary closing conditions, including regulatory and shareholder approval.
“Grandpoint is a highly attractive business banking franchise that we have known for many years and believe will be an excellent strategic and cultural fit with our existing franchise. The expansion of our organization remains a key focus of our long-term strategic plan as we build Pacific Premier into the leading commercial bank headquartered in Southern California,” said Steven R. Gardner, president, chairman and CEO of Pacific Premier.
Raymond James & Associates acted as financial advisor to Pacific Premier, with Holland & Knight serving as legal counsel. Keefe, Bruyette, & Woods acted as financial advisor to Grandpoint, with Sullivan & Cromwell serving as their legal counsel.