Northwest Bancshares to Acquire Penns Woods Bancorp in $270 Million Deal

Deal News | Dec 17, 2024 | Globenewswire

Northwest Bancshares to Acquire Penns Woods Bancorp in $270 Million Deal

Northwest Bancshares, Inc., the bank holding company for Northwest Bank, has announced a definitive agreement to merge with Penns Woods Bancorp, Inc. in an all-stock transaction valued at approximately $270.4 million. The merger, which is anticipated to close in the third quarter of 2025, will significantly expand Northwest's presence in Pennsylvania, increasing total assets to over $17 billion and establishing Northwest as one of the country's top 100 banks. As part of the deal, Northwest will exchange 2.385 of its shares for each Penns Woods share, providing a premium to the latter's shareholders. The merger is structured as a tax-free reorganization and is projected to enhance Northwest's earnings from 2026 onward. Additionally, Richard A. Grafmyre of Penns Woods will join both Northwest boards post-merger. The transaction, subject to shareholder and regulatory approvals, seeks to broaden Northwest's service capabilities and market reach, leveraging the strengths and reputations of both banks. The integration strategy focuses on maintaining client relationships and optimizing synergy benefits.

Sectors

  • Banking and Financial Services
  • Mergers and Acquisitions

Geography

  • United States – Both Northwest Bancshares and Penns Woods Bancorp are U.S.-based companies, with operations and branch networks primarily in Pennsylvania, Ohio, New York, and Indiana.
  • Pennsylvania – The article highlights significant operations and market presence expansion expected in Pennsylvania due to the merger.
  • Ohio – Northwest Bancshares is headquartered in Columbus, Ohio, and plays a central role in the merger announcement.

Industry

  • Banking and Financial Services – The article involves bank holding companies engaged in providing banking services, including consumer and business banking. Northwest Bancshares and Penns Woods Bancorp operate in this sector, focusing on banking footprint expansion and integration.
  • Mergers and Acquisitions – The article discusses an acquisition deal between Northwest Bancshares and Penns Woods Bancorp.

Financials

  • $270.4 million – The total value of the merger transaction between Northwest Bancshares and Penns Woods Bancorp.
  • $2.3 billion – Total assets of Penns Woods Bancorp as of September 30, 2024.
  • $17 billion – Expected pro forma total assets of the combined company post-merger.
  • $34.44 per share – The transaction consideration for each share of Penns Woods common stock.

Participants

NameRoleTypeDescription
Northwest Bancshares, Inc.AcquirerCompanyA bank holding company headquartered in Columbus, Ohio, operating Northwest Bank.
Penns Woods Bancorp, Inc.TargetCompanyA bank holding company of Jersey Shore State Bank and Luzerne Bank, headquartered in Williamsport, Pennsylvania.
Louis J. TorchioPresident and CEO of NorthwestPersonExecutive leading Northwest Bancshares during the merger.
Richard A. GrafmyreCEO of Penns WoodsPersonExecutive overseeing Penns Woods Bancorp, joining Northwest boards post-merger.
Janney Montgomery Scott, LLCFinancial Advisor to NorthwestCompanyProviding financial advisory services to Northwest Bancshares for the transaction.
Dinsmore & Shohl LLPLegal Advisor to NorthwestCompanyProviding legal advisory services to Northwest Bancshares for the transaction.
Stephens Inc.Financial Advisor to Penns WoodsCompanyProviding financial advisory services to Penns Woods for the transaction.
Stevens & Lee, P.C.Legal Advisor to Penns WoodsCompanyProviding legal advisory services to Penns Woods for the transaction.