Atlantic Union Bankshares Corporation (AUB) on October 21, 2024, entered a merger agreement to acquire smaller rival Sandy Spring Bancorp, Inc. (SASR) in an all-stock deal valued at $1.6 billion, as the regional lender seeks to strengthen its presence in Northern Virginia and Maryland.
Under the terms of the agreement, each outstanding share of Sandy Spring common stock will be converted into the right to receive 0.900 shares of Atlantic Union common stock. This values the transaction at about $34.93 per Sandy Spring common share, representing a premium of 7.11% from the stock’s last close.
Sandy Spring Bancorp, Inc. is a bank holding company based in Olney, Maryland, that provides a wide range of financial services through Sandy Spring Bank, including commercial and retail banking, mortgage, private banking, insurance, and investment management across Maryland, Virginia, and Washington, D.C.
Atlantic Union Bankshares Corporation is a Richmond, Virginia-based bank holding company that offers a variety of banking and financial services through Atlantic Union Bank, including deposit accounts, loans, credit cards, mobile banking, and wealth management services across Virginia, Maryland, and North Carolina.
The companies expect the combination to create the largest regional bank headquartered in the lower Mid-Atlantic, with $39.2 billion in assets. Olney, Maryland-based Sandy Spring managed $14.4 billion in assets, as of September 30, 2024.
Through the “partnership with Sandy Spring, Atlantic Union will create a preeminent regional bank, with Virginia as its linchpin, that spans the lower mid-Atlantic into the Southeast “, said John C. Asbury, the CEO of Atlantic Union.
The deal will nearly double Atlantic Union’s wealth management business, increasing assets under management by over $6.5 billion. Atlantic Union is acquiring Sandy Spring at 0.92 times the book value.
Last month, the reports of Sandy Spring working with financial advisors to assess takeover interest started making rounds. The price was at $30.75 before Bloomberg reported that the Maryland-based company had held discussions with suitors including Atlantic Union.
Three Sandy Spring executives, including CEO Dan Schrider, will join Atlantic Union’s board after the deal closes, which is expected by the end of the third quarter of 2025.
Atlantic Union was advised by Morgan Stanley and Davis Polk, while Sandy Spring received advice from Keefe, Bruyette & Woods, and Kilpatrick Townsend & Stockton.
For more detailed information about this merger and acquisition transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Sandy Spring Bancorp, Inc. (SASR) by Atlantic Union Bankshares Corporation (AUB)
The Deal Metrics page includes:
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Editor’s Note: Baranjot Kaur contributed to this article