Bank makes $1.1B acquisition
A Michigan-based bank with a large presence in West Michigan is acquiring another bank in the state for roughly $1.1 billion.
Midland-based Chemical Financial Corporation and Troy-based Talmer Bancorp announced this morning a definitive agreement for Chemical to acquire Talmer.
Through the agreement, Chemical will acquire all of Talmer’s outstanding shares of common stock in a $1.1-billion common stock and cash transaction, or $15.64 per share. Talmer’s shareholders will receive about 0.47 shares of Chemical common stock and $1.61 per share.
The deal is anticipated to create a bank with roughly $16 billion in assets, $12 billion in loans, $13 billion in deposits and 266 locations in Michigan and northeast Ohio.
The transaction is subject to regulatory approvals and the approval of the companies' shareholders and is anticipated to close in the second half of this year.
Chemical was advised by the investment banking firm Sandler O'Neill + Partners and the law firm Warner Norcross & Judd. Talmer was advised by the investment banking firm Keefe, Bruyette & Woods and the law firm Nelson Mullins Riley & Scarborough.
Chemical plans to consolidate Talmer Bank and Trust into Chemical Bank after the acquisition and operate under the Chemical Bank name.
Upon finalizing the deal, David Ramaker will continue to serve as chief executive officer and president of both Chemical Financial Corporation and Chemical Bank.
David Provost, current president and CEO Talmer Bancorp and chairman and CEO of Talmer Bank, will join the Chemical board of directors, while Gary Torgow, chairman of Talmer Bancorp, will serve as board chair of the combined entity. Chemical’s board of directors will also now include 12 people, with the addition of five Talmer board members.
Chemical’s Ramaker indicated the agreement is a transformational merger between two "healthy" Michigan banks with "complementary geographies."
“We have been impressed by what Gary Torgow, Dave Provost and the Talmer team has accomplished in a relatively short period of time, growing Talmer into one the region’s leading financial institutions,” Ramaker said. “In Talmer, we are partnering with a like-minded, growth-oriented organization, which shares a conservative lending culture built by talented and experienced professionals who seek to develop and support long-term client relationships with businesses and consumers who reside in the communities they serve.”
“By pairing two like-minded companies with consistent philosophies and cultures and a strong focus on growth, we believe that shareholders of both organizations will benefit from the merger,” Torgow said. “The enhanced growth opportunities and efficiencies gained from the merger will strengthen our ability to achieve our goal of delivering strong and sustainable earnings growth over the long term.”