Cambridge Bancorp adding to Boston operations with Wellesley deal
Cambridge Bancorp in Cambridge, Mass., has agreed to buy Wellesley Bancorp in Wellesley, Mass.
The $2.9 billion-asset Cambridge said in a press release Thursday that it will pay $122 million in stock for the $986 million-asset Wellesley. The deal is expected to close in the second quarter.
Cambridge said the deal should be 4.4% accretive to its 2021 earnings per share. It should take about two years for Cambridge to earn back the projected 1.6% dilution to its tangible book value.
Wellesley has six branches in the Boston area, along with $833 million in loans and $759 million in deposits. It also has $363 million of wealth management assets.
Cambridge and Wellesley “are both dedicated to providing individuals, families, and businesses with exceptional personal attention and custom financial solutions,” Cambridge CEO Denis Sheahan said in the release. Wellesley “is a well-managed, financially strong and growing company located in attractive markets.”
The Wellesley directors, including President and CEO Thomas Fontaine, will join Cambridge’s board.
Keefe, Bruyette & Woods and Hogan Lovells advised Cambridge. Sandler O’Neill and Kilpatrick Townsend & Stockton advised Wellesley.