Southern regional-bank operator Iberiabank Corp. said it will buy Omni Bancshares Inc. for about $40 million as it looks to bolster its presence in the New Orleans area.
According to terms of the deal, Omni shareholders will receive 0.3313 of a share of Iberiabank--valuing Omni shares at about $18.94, or a 24% premium to Friday's closing price. The company has about 2.1 million shares outstanding. Iberiabank also noted that about $24 million of Omni trust preferred and holding-company debt will be assumed in the deal.
Iberiabank said it expects the deal to immediately add to its bottom line, excluding one-time and merger-related costs totaling about $15 million.
Iberiabank President and Chief Executive Daryl G. Boyd called the deal "an important step for Iberiabank to accelerate the growth of our Southeastern Louisiana franchise and, in particular, the New Orleans market." He noted that the deal nearly doubles the company's presence in the New Orleans metropolitan area.
The deal has been approved by the two companies' boards and is expected to close during the second quarter. The deal is subject to the approval by regulators and Omni shareholders.
