Horizon Bancorp in Michigan City, Ind., has agreed to buy Wolverine Bancorp in Midland, Mich.
The $3.2 billion-asset Horizon said in a press release Wednesday that it will pay $91.8 million in cash and stock for the $379.3 million-asset Wolverine. The deal, which is expected to close in the third or fourth quarter, prices Wolverine at 147% of its tangible book value.
With the acquisition, Horizon would enter several new markets in northern Michigan, including Troy.
“We are enthusiastic about this merger, as it allows Horizon to extend our reach into Michigan while remaining true to our values as we partner with this like-minded institution,” Craig Dwight, Horizon’s chairman and CEO, said in the release.
Horizon expects the deal to be more than 5% accretive to its 2018 earnings per share. It should take less than a year to earn back any dilution to Horizon’s tangible book value.
Horizon was advised by Raymond James and Barnes & Thornburg. Wolverine was advised by Keefe, Bruyette & Woods and Luse Gorman.