Olympia-based Bank holding company Heritage Financial has entered into a definitive agreement to buy Valley Community Bancshares, in a 50% cash and 50% common stock (CS) deal.
As per the transaction terms, Valley’s shareholders will receive approximately $19.50 in cash and 1.3611 shares of Heritage’s CS per share.
Following completion of the transaction, Valley Bank will merge into Heritage Bank and the integrated company will manage almost $1.6bn in assets with enhanced market share in the Puget Sound region.
Heritage Financial president and CEO Brian Vance said the acquisition will offer synergies and enable it to provide Valley Bank’s customers with extra products, increased lending and a wide Western Washington branch delivery network.
The transaction, which has already been approved by the board of directors of both firms, is expected to close during the third quarter of 2013, pending regulatory approvals and other customary closing conditions.
Additionally, Valley Community Bancshares CEO David Brown has been nominated to serve on the acquirer’s board and assist in the transition process.
Heritage and Valley received financial advice from Keefe, Bruyette and Woods and McAdams Wright Ragen, while Breyer & Associate and Keller Rohrback served as legal counselors respectively.