DETROIT - Comerica Inc. said it had agreed to acquire $196 million- asset QuestStar Bank, Houston, for $25 million in cash.
The purchase price represents 2.1 times QuestStar's book value on March 31, and 6.4 times expected 1995 earnings.
The deal, subject to shareholder and regulatory approval, is expected to be completed in the fourth quarter. QuestStar is to be merged with Comerica's Texas subsidiary.
QuestStar is the largest bank lender of Small Business Administration loans in Houston, the second largest in the state of Texas, and the seventh largest in the nation, Comerica said. QuestStar operates three full-service branches and four grocery store branches in western and northwestern Houston.
Comerica Bank Texas operates 57 branches in Dallas, Fort Worth, Houston, and Austin. It reported assets of $3.5 billion on March 31.
Comerica has assets of $34 billion. In addition to Texas, it operates banks in Michigan, California, Illinois, and Florida.