FirstFed America Bancorp Inc., a regional banking company serving portions of Massachusetts and Rhode Island, on Monday said it would buy People’s Bancshares Inc. for $72 million in cash and stock, expanding its reach in southeastern Massachusetts.
Terms of the deal call for shareholders of Easton, Massachusetts-based People’s to receive either 1.2644 shares of FirstFed common stock or $22 in cash for each share of People’s common stock they own. FirstFed said 55 percent of People’s shares will be acquired for cash and 45 percent will be exchanged for common stock.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
Learn More
After the deal, which should close in the first quarter of 2002, People’s shareholders will own about 23 percent of FirstFed’s shares outstanding.
The deal will increase FirstFed’s assets to about $2.7 billion from $1.7 billion, raise the number of banking offices to 27 from 15 and increase loan origination centers to 15 from five.
FirstFed said it expects to cut People’s consolidated expenses by 20 percent to 25 percent by the end of 2002, and it also expects the deal to add to earnings per share in the first year after it is completed.
(Reuters)
