BancorpSouth, Cadence to merge in $6 billion deal
Apr. 12—TUPELO — BancorpSouth Bank and Cadence Bancorporation are combining under an all-stock swap valued at $6 billion.
With a combined assets of some $44 billion, the merger creates the fifth largest bank headquartered in the combined nine-state footprint.
While BancorpSouth will be the surviving entity, its brand and logo will disappear. The combined company will operate as Cadence Bank, with dual headquarters in Tupelo and Houston, Texas. Operations centers will be maintained in Tupelo and Birmingham, as well as special sites in Starkville; Macon, Georgia and Houston, Texas.
Both banks' boards of directors have unanimously approved the deal, with Cadence shareholders receiving 0.70 shares of BancorpSouth for each Cadence share they own. In addition, Cadence shareholders will get a one-time special cash dividend of $1.25 per share once the merger is completed.
The value to Cadence shareholders is about $3 billion, and the total market value of the combined company is pegged at $6 billion.
BancorpSouth shareholders will own about 55%; Cadence shareholders will own approximately 45% of the combined company.
BancorpSouth Chairman and CEO Dan Rollins will be the combined company's chairman and CEO, and Cadence CEO Paul Murphy will be executive vice chairman.
"Cadence has built an impressive commercial banking franchise that when combined with the strengths of our team at BancorpSouth seems to be a perfect fit," Rollins said via press release, Monday. "This strategic merger will allow us to expand our reach and offerings with minimal overlap in our existing branch network."
The board of directors will initially be comprised of 20 directors — 11 from BancorpSouth and nine from Cadence.
"I am thrilled to partner with BancorpSouth," Murphy said. "I have great respect for the franchise they have built over the last 145 years, beginning in my home state of Mississippi. The BancorpSouth community banking franchise is top tier and complements Cadence's expertise in middle-market commercial banking seamlessly."
The combined bank will have 423 banking offices in its nine-state footprint, as well as 29 insurance locations.
The merger is expected to be completed by the fourth quarter of this year.
