Capital Bank Financial in Coral Gables, Fla., has agreed to buy CommunityOne Bancorp in Charlotte, N.C.
The $7.3 billion-asset Capital said in a press release Monday that it will pay $350 million, or $14.25 a share, in cash and stock for the $2.4 billion-asset CommunityOne. The deal is expected to close in the first quarter.
The transaction values CommunityOne at 130% of its tangible book value. Capital said the deal should have single-digit accretion to its 2016 earnings per share, excluding merger charges, and double-digit accretion in subsequent years. It should take Capital just over two years to earn back the dilution to tangible book value.
CommunityOne had recently declared victory in a lengthy turnaround project that included backing from private equity and a merger with Bank of Granite.
The acquisition "creates a high-powered Carolinas franchise while meeting the financial expectations of our shareholders," Gene Taylor, Capital's chairman and chief executive, said in the release. "CommunityOne brings us skilled employees, a complementary branch network, and high-quality loan and deposit relationships, and the transaction improves Capital Bank's returns."
Evercore and Wachtell, Lipton, Rosen & Katz advised Capital. Sandler O'Neill, UBS Securities and Arnold & Porter advised CommunityOne.