Mechanics Bank completed its acquisition of Rabobank, a subsidiary of Rabobank Group. Mechanics Bank acquired Rabobank’s retail, business banking, commercial real estate, mortgage, and wealth management businesses.
Total consideration for the transaction, which was announced March 15, 2019, was approximately $2.1 billion.
The new entity operates under the Mechanics Bank name, with more than $17 billion in total assets, a best-in-class deposit franchise and 144 branches. Headquartered in Walnut Creek, CA, Mechanics Bank was founded in 1905 to assist the area’s local businesses and families and has remained focused on building lasting customer relationships throughout its storied history. Today, Mechanics Bank is the 5th largest California-based bank.
“We believe this strategic combination of two highly complementary franchises will unlock significant value for our shareholders, clients, employees and the many communities served by the new Mechanics Bank,” said Carl B. Webb, chairman of the board of Mechanics Bank. “We are pleased to have closed such a major transaction less than six months since announcing our acquisition plans, and we now look forward to putting the tremendous resources of this unique financial institution to work for all of our constituents.”
Gerald J. Ford and Webb are co-managing partners of Dallas-based Ford Financial Fund, which owns 81% of Mechanics Bank.
John DeCero, formerly president and CEO of Mechanics Bank, and Mark Borrecco, formerly CEO of Rabobank, serve as Co-CEOs of the new organization. They join Webb as members of the office of the chairman, which is charting the direction of Mechanics Bank.
DeCero, a 29-year banking veteran, will oversee commercial banking, wealth management and indirect auto finance. Borrecco, with a 25-year career in financial services, will manage the retail banking and consumer lending activities of the bank.
Wachtell, Lipton, Rosen & Katz served as legal advisor to Mechanics Bank with Credit Suisse serving as financial advisor.
