Banc of California, PacWest to Merge in All-Stock Deal
Banc of California and PacWest Bancorp announced an all-stock merger backed by $400 million in equity from private equity firms Warburg Pincus and Centerbridge Partners.
PacWest stockholders will receive 0.6569 shares of Banc of California stock per share of PacWest stock. Based on closing prices on Tuesday, the deal values PacWest at $9.60 a share, a premium over its closing price of $7.67 a share.
Under the terms of the agreement, PacWest will merge into Banc of California, and Banc of California, N.A. will merge into Pacific Western Bank.
The combined company is expected to have approximately $36.1 billion in assets, $25.3 billion in total loans, $30.5 billion in total deposits and more than 70 branches in California.
PacWest shareholders will own 47% of the outstanding shares of the combined company, while Warburg Pincus and Centerbridge will own 19% and Banc of California shareholders will have 34%.
Banc of California CEO Jared Wolff will retain the same role at the combined company. John Eggemeyer, who currently serves as the independent Lead Director on the board of PacWest, will become the Chairman of the board.
