Regional lenders Berkshire Hills Bancorp, Inc. (BHLB) and Brookline Bancorp, Inc. (BRKL) entered a merger agreement on December 16, 2024, to combine in a $1.1 billion all-stock deal.
Under the terms of the agreement, each outstanding share of Brookline common stock will be exchanged for the right to receive 0.42 shares of Berkshire common stock. The transaction is valued at about $12.68 per share of Brookline common stock, representing a premium of 0.96% from the stock’s last close.
Brookline Bancorp, Inc. is a multi-bank holding company based in Boston, offering a range of commercial, business, and retail banking services through its subsidiaries: Brookline Bank, Bank Rhode Island, PCSB Bank, and Eastern Funding. Founded in 1871, the company also provides loans, cash management, and investment services across Massachusetts, Rhode Island, and New York.
Berkshire Hills Bancorp, Inc. is the parent company of Berkshire Bank, a community-focused bank providing a wide range of banking services, including commercial, retail, consumer lending, and wealth management, with 106 branches across New England and New York. Founded in 1846 and headquartered in Boston, the company provides financial expertise and trusted advice to its clients.
As part of the planned merger, Berkshire announced it would raise money by selling shares to investors. A total of $100 million worth of Berkshire common stock will be sold at $29.00 per share. This fundraising is expected to be completed by December 19, 2024.
In the combined company, Berkshire shareholders will own about 51%, Brookline shareholders will own about 45%, and investors buying the new shares will own about 4%.
Berkshire Hills is purchasing Brookline at 0.91 times its book value.
The merger, which is expected to close by the end of the second half of 2025, will create a larger bank holding with $24 billion in assets and 148 branches under its belt.
The new company’s Board of Directors will include eight members from Berkshire and eight from Brookline. David Brunelle, who is currently the Chairperson of Berkshire’s Board, will be the Chairperson of the new company and its bank.
Paul Perrault, currently the Chairman and CEO of Brookline, will take on the role of President and CEO of the combined company, while Carl Carlson, Brookline’s current Co-President and Chief Financial and Strategy Officer, will serve as the Chief Financial and Strategy Officer of the new organization.
The combined bank will be organized into six regions, with leadership evenly split between Berkshire and Brookline, each contributing three leaders.
As part of the merger, the four existing bank charters will be combined into a single Massachusetts state-chartered bank, operating under the Brookline Bank charter. The new company will be listed on the New York Stock Exchange with a new name and ticker symbol to be announced before the deal closes.
For more comprehensive details about this M&A deal, please visit the Deal Metrics page:
The Deal Metrics page for each merger or acquisition includes:
– A spread history chart of the merger from announcement through completion or failure.
– Every event as the merger progresses through the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.
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Editor’s Note: Baranjot Kaur contributed to this article