The transaction involved a purchase price of $12 million in cash
United Community Financial, the parent company of Butler Wick Corporation and The Home Savings and Loan Company, has completed the sale of Butler Wick & Co, a wholly owned subsidiary of the Butler Wick Corporation, to Stifel Financial. The transaction involved a purchase price of $12 million in cash, subject to post-closing adjustments.
Douglas McKay, chairman and CEO of United Community Financial (UCFC), said: The completion of this transaction in a timely manner allowed us to accomplish two important objectives before the end of 2008.
UCFC reduced outstanding debt by $8 million and provided new capital to Home Savings in the amount of $2.25 million. As a result, we are able to begin 2009 with a stronger balance sheet, higher capital ratios and the ability to focus on our primary lines of business.
He also added: “This transaction is consistent with our strategic objectives, including reducing overall debt and focusing on our core business.”
Butler Wick, provides securities brokerage, asset management, trust services, insurance products, public finance and other underwriting services and Home Savings is a community-oriented financial institution.
Reuters quoted Thomas J. Cavalier, chairman, chief executive officer and president of Butler Wick Corp, stating Our financial advisors and clients will be well-served through our association with Stifel Financial. Their history and culture are similar to Butler Wick & Co. In fact, that is what helped draw our two firms together.