BB&T has agreed to buy Susquehanna Bancshares for about $2.5 billion in cash and shares to expand in the Mid-Atlantic region.
Susquehanna stockholders will receive 0.253 share of BB&T common stock and $4.05 in cash for each share, BB&T said Wednesday in a news release. Based on BB&T's closing price of $38.33 on Tuesday, the offer is worth about $13.75 a share, 39% above Susquehanna's $9.90 price Tuesday. Calculated using BB&T's average closing price over the 45 days ended on Nov. 10, the deal is worth $13.50 per share.
BB&T Chief Executive Officer Kelly King, 66, has been scooping up branches from competitors and seeking bank acquisitions as he pushes into new regions. The firm said in September it planned to buy Bank of Kentucky Financial for $363 million, a week after agreeing to acquire 41 Texas branches from Citigroup.
Susquehanna, based in Lititz, Pa., has $18.6 billion in assets and 245 offices in Pennsylvania, Maryland, New Jersey and West Virginia, according to the release. William J. Reuter and Christine Sears, current Susquehanna board members, will join Winston-Salem, N.C.-based BB&T's board when the transaction is completed.
"This acquisition will significantly expand BB&T's footprint in the Mid-Atlantic region and improve its ranking to No. 5 in Maryland," BB&T said in the release.