RBC Centura acquires Alabama National BanCorporation
RBC Centura Banks, Inc., a wholly owned subsidiary of Royal Bank of Canada (RY on TSX and NYSE), and Birmingham-based Alabama National BanCorporation (NASDAQ: ALAB) today announced the signing of a definitive merger agreement pursuant to which RBC Centura Banks, Inc., will acquire Alabama National BanCorporation (ANB), parent of 11 subsidiary banks and other affiliated businesses in, Alabama, Florida and Georgia.
Under the agreement, shareholders of ANB will receive $80 per share payable in cash, RBC shares or a combination of each, valuing the deal at approximately $1.6 billion, with the total transaction consideration consisting one half of cash and one half of RBC shares. The acquisition is subject to customary closing conditions, including approval by U.S. and Canadian regulators and by ANB shareholders. The transaction, scheduled to close in early 2008, is expected to make a significant contribution to RBC Centura’s revenue growth in the near term and be accretive to RBC earnings in 2009.
“This acquisition positions RBC Centura even better to serve the banking needs of businesses, business owners and professionals in the Southeast,” said Scott Custer, chairman and chief executive officer of RBC Centura. "This deal strengthens our ability to reach more customers in the region by expanding our branch network to more than 440 locations, solidifying our market position in Alabama and opening new and important markets in Florida, and increasing our presence in Atlanta.
“By adding 45 locations in Alabama, 45 locations in Florida and 13 locations in Georgia, the acquisition of ANB is a logical step for RBC Centura to gain market share in the Southeast,” Custer said.
“I am very pleased to have ANB join forces with RBC,” said John H. Holcomb III, ANB Chairman and CEO. “Our company’s success over the years can be attributed to the talented individuals we’ve hired and who have joined us from acquisitions. Similarly, I’m excited about the prospect of future success as our team joins RBC and leverages the cultural and geographic fit between our organizations and as we become part of one of North America’s leading financial service organizations.”
“This acquisition reflects RBC’s stated approach to expand strategically in the U.S.” Custer said. “We are continuing to pursue investments that will grow our business in high growth markets and bring diverse service offerings and capabilities to new and existing customers.”
Under the agreement, RBC Centura will acquire ANB, which includes 11 bank subsidiaries with 103 banking centers, eight mortgage/loan offices and 124 ATMs. As of June 30, 2007, ANB had assets of $7.9 billion, deposit balances of $5.8 billion and loans of $5.7 billion. Upon completion of the transaction, RBC Centura will surpass $33 billion in assets and will grow to 85 locations in Alabama, 89 locations in Florida and 68 in Georgia.
The transaction extends RBC’s growing U.S. financial services platform focused on banking and wealth management. In addition to RBC Centura, RBC’s U.S. operations include: RBC Dain Rauscher, a full-service securities firm headquartered in Minneapolis; RBC Insurance, a national provider of insurance protection and asset accumulation solutions based in Greenville, S.C.; RBC Capital Markets, with corporate and investment banking operations in New York, Minneapolis, Greenwich and other select U.S. locations; and Global Private Banking with offices in New York, Miami, Houston and San Francisco.
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