Menu
Chicago-based commercial bank Wintrust Financial Corporation (WTFC) entered into a merger agreement on April 15 with Michigan-based commercial lender Macatawa Bank Corporation (MCBC), to acquire it in an all-stock deal for about $510.3 million.
Under the terms of the agreement, the shareholders of Macatawa will receive $14.85 per share based on the current price and under the transactions, each outstanding share of Macatawa common stock will receive merger consideration paid in shares of Wintrust common stock based on Wintrust’s average trading price at closing.
This means that the per share consideration is subject to change based on a collar, where the share fraction of Wintrust common stock will increase or decrease depending on a lower-bound price of $89.03 and an upper-bound price of $113.03.
“Macatawa provides an ideal platform to expand into West Michigan,” Timothy Crane, President and CEO of Wintrust, said, adding that together they will be the “community-minded competitor to the other banks in the area”.
Macatawa’s Chairman Richard Postma said in a statement that after the merger the Michigan-based commercial lender will retain the Macatawa Bank name, its key employees, branches, and a legally constituted community bank board.
The deal, subject to shareholder and regulatory approvals, is expected to close in the second half of 2024 and is not expected to have a material effect on Wintrust’s 2024 earnings per share.
For more information, please refer to the Deal Metrics page here:
Disclaimer: Please perform your own due diligence before buying or selling any securities mentioned in this article. We cannot guarantee the completeness or accuracy of the content or data provided in this article.