ANN ARBOR, Mich. - Republic Bancorp Inc. said it has agreed to acquire Horizon Financial Services Inc., a thrift holding company in the Cleveland area, for about $35.7 million in stock.
Republic, which has $547 million in assets. would approach its $1 billion goal by adding Horizon's $379 million, said Jerry D. Campbell, chairman, president, and chief executive officer of Ann Arbor-based Republic. Closing is expected in the second quarter of 1993.
He said the Cleveland market presents a growth opportunity for Republic's single-family mortgage origination and servicing business.
Operating in a Large Area
Republic operates in six states through 21 banking offices, loan production offices, and subsidiaries.
Horizon owns Horizon Savings Bank of Beachwood, Ohio, with eight offices.
Under the terms of the agreement, each Horizon share will be exchanged for 0.715 share of Republic's common stock plus 0.56 share of a new issue of convertible preferred stock.
The preferred stock will have a 7% cumulative dividend rate and a stated value of $25 a share, and will be convertible into Republic common stock at a rate equal to 120% of its average price of for a specified period prior to the closing of the transaction.
The conversion price cannot be less than $ 10 a share nor more than $11.82.