A group of private investors has agreed to buy Radius Bancorp in Boston.
Patriot National Partners, GCP Capital Partners, Endicott Management and BayBoston Capital are part of a group that will buy a 95% stake in Radius for $63 million. Members of Radius’ management and board were also involved in the transaction, which will provide the $744 million-asset company with about $18 million of new capital.
Radius, once known as First Trade Union Bancorp, said in a press release Wednesday that the transaction resolves a regulatory issue by allowing New England Carpenters Pension and Annuity Funds and the Empire State Carpenters Pension Funds, its existing ownership group, to divest control of the bank. The sale should also provide capital for “expansionary purposes,” Radius said.
The pension funds had
“This recapitalization is an outstanding result for our current ownership group, our clients and employees,” Michael Butler, the company’s president and chief executive, said in the release. “Being able to satisfy our owners’ regulatory requirements while simultaneously adding growth capital … is the best possible outcome.”
Sandler O’Neill advised Radius, and Keefe, Bruyette & Woods served as placement agent. Hogan Lovells provided Radius with legal advice, while Wachtell, Lipton, Rosen & Katz advised Patriot Financial.