CA Bancorp received approximately $18.40 million in cash and $0.13 million in loans receivable for total net consideration received of $18.53 million. Total Strategy received approximately $1.95 million in cash. The final purchase price of the transaction is subject to post-closing adjustments based on the net book value of the AgriFinancial as at end of day of January 30, 2009.
It was previously announced that contemporaneous with the closing of the transaction, CA Bancorp would provide $3 million in short term subordinated debt financing to Western Financial (WFG). WFG no longer requires the debt financing, and therefore, that financing will not be proceeding.
The transaction was effected through a sale of all of the issued and outstanding shares of CA Bancorp Financial to Bank West, WFG’s wholly owned bank. CA Bancorp Financial owned all of the issued and outstanding shares of AgriFinancial. CA Bancorp and Total Strategy were the sole shareholders of CA Bancorp Financial with CA Bancorp holding approximately 90% and Total Strategy holding approximately 10% of its issued and outstanding shares. The total invested capital was $10.5 million.
Mark Gardhouse, president of CA Bancorp, said: The CA Bancorp management team worked very closely with AgriFinancial over the past 16 months implementing a series of initiatives that has repositioned the company to capitalise on the growing Canadian agricultural sector. The sale to WFG will enable AgriFinancial to continue to provide industry leading financial products and outstanding service across WFG’s new expanded customer base.
