Provident New York Bancorp said on Thursday that it would acquire Sterling Bancorp for $344 million in stock.
The deal would combine two metropolitan New York banks that serve small-to-middle market commercial clients and consumers. The merged bank will be known as Sterling National Bank.
Under the terms of the deal, Sterling shareholders will receive 1.2625 shares of Provident for every share. Based on Provident’s closing stock price on Wednesday, that value of $11.12 represents a premium of 11 percent to Sterling’s closing stock price on Wednesday.
The acquisition of Sterling, which was founded in New York in 1929, is the most significant deal for Provident since its 2004 takeover of Warwick Community Bancorp for $147 million. Provident, based in Montebello in Rockland County, New York, was founded in 1888.
The two banks had combined pro forma revenue of $257 million last year. Together, they will have nearly $7 billion in assets.
Jack L. Kopnisky, president and chief executive of Provident New York Bancorp will be C.E.O. of the combined company, while Louis J. Cappelli, Sterling Bancorp’s chairman and chief executive, will be chairman.
Bank of America Merrill Lynch, Credit Suisse and the law firm Wachtell, Lipton, Rosen & Katz advised Provident. JPMorgan Chase, Keefe Bruyette & Woods and the law firm Sullivan & Cromwell advised Sterling.<>
During the merger talks, Provident was given the code name “pepper,†while Sterling was â€" you guessed it â€" “salt.â€
