Investar ending 2020 with deal for Alabama bank
Investar Holding in Baton Rouge, La., has agreed to buy Cheaha Financial Group in Oxford, Ala.
The $2 billion-asset Investar said in a press release Friday that it will pay $41.1 million in cash for the $207 million-asset parent of Cheaha Bank. The deal is expected to close in the second quarter.
Investar also said it plans to sell $30 million of common stock to institutional and other accredited investors as part of a private placement. The company agreed to sell about 1.3 million shares of stock at $23.25 each. Cheaha has four branches, $117 million in loans and $177 million in deposits.
“The leadership team at Cheaha has done an extraordinary job operating the bank, and we are confident that they will make a great addition to the Investar family,” John D’Angelo, Investar’s president and CEO, said in the release. “This merger significantly enhances our presence along the I-20 corridor in Alabama and complements our recent acquisition of Bank of York.”
Janney Montgomery Scott and Fenimore, Kay, Harrison & Ford advised Investar. Maynard Cooper & Gale advised Cheaha, while National Capital provided the fairness opinion.
Janney Montgomery was the lead placement agent for the private placement, while D.A. Davidson was co-placement agent. Fenimore Kay advised Investar, while Vedder Price advised the placement agents.