Guaranty Bancshares, the holding company for Guaranty Bank & Trust, agreed to acquire Houston-area Westbound Bank. Both boards of directors approved the transaction, which is expected to close in Q2/18, subject to the customary regulatory approvals and Westbound shareholder approval.
Under the terms of the agreement, Guaranty Bancshares will issue 900,000 shares of its common stock and pay cash in the aggregate amount of $6.4 million to the shareholders and option holders of Westbound, subject to certain potential adjustments. If Westbound’s tangible equity is greater than $16.5 million at closing, Westbound will be permitted to pay a pre-closing cash distribution to its shareholders and option holders in an amount equal to any excess.
Upon the closing of the acquisition, Guaranty’s total assets will be more than $2.2 billion, while operating 32 locations in 24 Texas markets, including the four Westbound locations. Troy England, Westbound’s CEO, will become Houston Area chairman for Guaranty and lead the Houston MSA expansion efforts.
“We are pleased to announce our first acquisition into the dynamic Houston market,” said Ty Abston, CEO and board chairman of Guaranty. “Our expansion into this growing region has been a part of our strategy for several years, and Westbound brings to us a proven team and excellent initial footprint to make that happen.”
Guaranty Bancshares was advised in this transaction by Sandler O’Neill + Partners as financial advisor and Fenimore, Kay, Harrison & Ford as legal counsel. Westbound Bank was advised by The Bank Advisory Group as financial advisor and Hunton & Williams as legal counsel
