By Lisa Kerner
Charlotte, N.C., Nov. 23 - People's United Financial, Inc. announced it agreed to acquire Financial Federal Corp. in a stock-and-cash deal valued at about $27.74 per share, or approximately $738 million.
Financial Federal shareholders will receive $11.27 in cash and one share of People's United common stock.
A $26 million termination fee is included in the merger agreement, according to a form 8-K filed with the Securities and Exchange Commission.
Both companies' boards of directors have approved the transaction, which is expected to close in the first quarter of 2010.
"Financial Federal is a leader in equipment financing and provides a valuable complement to our existing business lines, particularly, People's Capital and Leasing (PCLC), our equipment financing subsidiary," People's United president and chief executive officer Philip R. Sherringham said in the release.
The transaction "substantially increases Financial Federal's growth potential by providing access to low-cost funding from People's United's deposits," Financial Federal CEO Paul R. Sinsheimer said in the release.
Morgan Stanley advised People's United, and Keefe Bruyette & Woods advised Financial Federal.
Financial Federal is financial services company based in New York that specializes in financing construction, road transportation and refuse equipment through installment sales and leasing programs.
People's United, located in Bridgeport, Conn., is the holding company for People's United Bank.
| Acquirer: | People's United Financial, Inc.
|
| Target: | Financial Federal Corp.
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| Announcement date: | Nov. 23
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| Price per share: | $11.27 cash and one People's United share
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| Transaction total: | $738 million
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| Termination fee: | $26 million
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| Expected closing: | First quarter of 2010
|
| Stock price for acquirer: | Nasdaq: PBCT: $16.47 on Nov. 20
|
| Stock price for target: | NYSE: FIF: $20.55 on Nov. 20
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