First Commonwealth Expands in Cincinnati with CenterGroup Acquisition
Deal News | Dec 18, 2024 | Globenewswire
First Commonwealth Financial Corporation, a prominent financial services holding company, announced a strategic move to enhance its footprint in the Cincinnati market through the acquisition of CenterGroup Financial, Inc., the holding company for CenterBank. The deal, valued at approximately $54.6 million, involves an all-stock transaction with a fixed exchange ratio, promising to expand First Commonwealth's presence by adding three branches and significant assets totaling $348.4 million. The merger aims to integrate CenterBank's customer base, known for being predominantly business-focused, and bolster the commercial strategy of First Commonwealth in Cincinnati. This acquisition is expected to be accretive to earnings in the upcoming years and aligns culturally with both companies' long-term growth trajectories. Financial and legal advisories on the deal are provided by Raymond James & Associates and Squire Patton Boggs for First Commonwealth, and Janney Montgomery Scott and Dinsmore & Shohl for CenterGroup. The merger completion is slated for the first half of 2025, pending necessary approvals.
Sectors
- Financial Services
- Banking
Geography
- United States – Both companies involved in the transaction are based in the United States, and the deal significantly affects the Ohio and Pennsylvania regions.
- Ohio – The acquisition specifically aims to enhance First Commonwealth's market presence in Cincinnati, Ohio.
Industry
- Financial Services – The acquisition involves two financial institutions, First Commonwealth Financial Corporation and CenterGroup Financial, emphasizing the sector's strategies for market expansion and asset acquisition.
- Banking – This transaction highlights the banking sector's dynamic where mergers are used to increase market presence and enhance service offerings.
Financials
- 54.6 million – The total valuation of the acquisition transaction, involving an all-stock deal.
- 348.4 million – Total assets to be added with the acquisition of CenterGroup into First Commonwealth's Cincinnati franchise.
- 6.10 shares – The fixed exchange ratio in the merger agreement, where CenterGroup shareholders receive First Commonwealth shares.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| First Commonwealth Financial Corporation | Acquirer | Company | A financial services holding company, parent to First Commonwealth Bank, expanding its Cincinnati operations through the acquisition. |
| CenterGroup Financial, Inc. | Target Company | Company | Holding company for CenterBank, providing community banking services in the Cincinnati market. |
| Raymond James & Associates, Inc. | Financial Advisor to Acquirer | Company | Financial advisor to First Commonwealth in the merger transaction. |
| Squire Patton Boggs (US) LLP | Legal Counsel to Acquirer | Company | Provided legal counsel to First Commonwealth for the merger. |
| Janney Montgomery Scott | Financial Advisor to Target | Company | Provided financial advisory services to CenterGroup for the merger. |
| Dinsmore & Shohl, LLP | Legal Counsel to Target | Company | Provided legal counsel to CenterGroup for the merger. |