By Lisa Kerner
Charlotte, N.C., Dec. 15 - Investors Bancorp, Inc. agreed to acquire American Bancorp of New Jersey, Inc. in a stock-and-cash transaction valued at $12.50 per share, or $140 million.
American Bancorp stockholders may elect to receive either 0.9218 shares of Investors Bancorp common stock or $12.50 in cash for each American Bancorp share, subject to proration.
Under the terms of the definitive agreement, 70% of American Bancorp shares will be converted into Investors Bancorp common stock, with the remaining 30% of American Bancorp shares converted into cash, an Investors Bancorp news release said.
Both companies' boards of directors have approved the agreement, which provides for a $5.6 million termination fee.
The transaction is expected to close in the second quarter of 2009.
Investors Bancorp said the merger will be 4% accretive to its fiscal-year 2010 GAAP earnings and 5% accretive to its fiscal-year 2011 GAAP earnings, prior to acquisition transaction charges.
American Bancorp vice chairman James H. Ward III will join Investors Bancorp's board.
The combined company will have $7.6 billion in assets, $4.4 billion in deposits and 57 branches in northern New Jersey, with no branch consolidation expected.
Citigroup Global Markets Inc. advised Investors Bancorp. American Bancorp was advised by Keefe, Bruyette & Woods, Inc.
Investors Bancorp, located in Short Hills, N.J., is a holding company for Investors Savings Bank, a New Jersey chartered savings bank.
American Bancorp is the holding company for American Bank of New Jersey, a federally chartered stock savings bank based in Bloomfield, N.J.
| Acquirer: | Investors Bancorp, Inc.
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| Target: | American Bancorp of New Jersey, Inc.
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| Announcement date: | Dec. 15
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| Transaction total: | $140 million
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| Price per share: | $12.50 cash or 0.9218 Investor Bancorp shares
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| Termination fee: | $5.6 million
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| Expected closing: | Second quarter of 2009
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| Stock price for acquirer: | Nasdaq: ISBC: $13.56 on Dec. 12
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| Stock price for target: | Nasdaq: ABNJ: $8.75 on Dec. 12
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