Upon the completion of the transaction, Beach Business Bank will be rebranded as "The Private Bank of California."
As per the terms of the acquisition agreement, the deal has been priced at nearly $50m, or almost $13.00 per diluted share, which represents a 27% premium to the most recent closing stock price for The Private Bank of California.
Shareholders of The Private Bank of California will get, in aggregate, 2,083,333 shares of First PacTrust common stock having a value of approximately $25m at $12.00 per share.
The deal is expected to close during the second quarter of 2013, which will enable First PacTrust to have more than $2.2bn in total assets with 22 branches located throughout Los Angeles, Orange, San Diego and Riverside counties and 23 loan production offices in California, Arizona, Oregon and Washington, US.
First PacTrust CEO Greg Mitchell said the acquisition of The Private Bank of California represents a significant milestone in the bank’s stated strategy of becoming Southern California’s bank of choice for small- to mid-sized businesses, entrepreneurs and high net worth individuals throughout Southern California.
"We are bringing together two highly complementary organizations that will enable First PacTrust to expand its Southern California footprint in attractive markets such as Los Angeles, Hollywood, Century City and Irvine," Mitchell added.
As part of the agreement, Richard Pachulski, David Misch, Richard Smith, and Nick Zappia have each entered into agreements to continue working with First PacTrust following the closing.
FIG Partners offered financial advice to First PacTrust and Wachtell, Lipton, Rosen & Katz served as legal counsel for this transaction. Milestone Advisors worked as financial adviser to The Private Bank of California and King, Holmes, Paterno & Berliner, acted as its legal counsel.
