Chemical Completes Caledonia Buy

December 8, 2003
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MIDLAND — Chemical Financial Corp. has finalized its acquisition of Caledonia Financial Corp., bank holding company for the State Bank of Caledonia.

Shareholders of Caledonia Financial will receive $39 cash for each share of the company’s common stock in a taxable transaction valued at approximately $55.3 million.

Caledonia Financial had total assets of $210 million, total deposits of $181 million and total shareholders equity of $21.3 million as of June 30. It has four banking offices in Kent, Kalamazoo and Barry counties.

Midland-based Chemical Financial is a bank holding company with three subsidiary banks operating 129 offices and two loan production offices across 32 counties in Michigan’s lower peninsula.

Chemical’s total assets were $3.6 billion as of June 30, and it ranks as the fourth largest bank holding company headquartered in Michigan.

David Ramaker, Chemical’s president and CEO, said the acquisition helps solidify Chemical’s entry into the southern portion of the Grand Rapids marketplace and provides the company with a much bigger presence in the Kalamazoo market.           

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