By Lisa Kerner
Charlotte, N.C., Sept. 10 - First Niagara Financial Group Inc. agreed to acquire Great Lakes Bancorp, Inc. for $14.00 per share in a transaction valued at some $153 million.
Great Lakes shareholders may elect to receive $14.00 in cash, 0.993 of a share of First Niagara stock, or a combination of cash and stock for each share of Great Lakes stock they own, subject to proration.
Two Great Lakes directors will join First Niagara's western New York advisory board.
The transaction is subject to shareholder approval and is slated to close in the first quarter of 2008.
"The Great Lakes acquisition strengthens our market position in the Buffalo-Niagara region of western New York while being immediately accretive to earnings and tangible book value per share," First Niagara president and chief executive officer John R. Koelmel said in a company news release.
"Consistent with our focus on our best and most profitable growth opportunities, we are expanding our presence in Buffalo and Erie County, a major strategic priority for us, in an effective and efficient way."
Great Lakes has $892 million in assets and operates 12 Greater Buffalo Savings Bank branches in Erie County, two in Chautauqua County and two in Niagara County, N.Y., the release stated.
Significant cost efficiencies are expected as a result of the merger because both companies are based in western New York.
Located in Buffalo, Great Lakes operates as the holding company for the Greater Buffalo Savings Bank.
First Niagara is the holding company for First Niagara Bank based in Lockport, N.Y.
| Acquirer: | First Niagara Financial Group Inc.
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| Target: | Great Lakes Bancorp, Inc.
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| Transaction total: | $153 million
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| Price per share: | $14.00 cash, 0.993 of a First Niagara share, or combination of cash and stock
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| Announcement date: | Sept. 10
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| Expected closing: | First quarter 2008
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| Stock price for acquirer: | Nasdaq: FNFG: $13.91 on Sept. 7
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| Stock price for target: | NYSE: GLK: $12.00 on Sept. 7
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