On May 5, 2016, Bar Harbor Bankshares (NYSE: BHB), headquartered in Bar Harbor, ME, announced that it entered into a definitive agreement to acquire Lake Sunapee Bank Group (Nasdaq: LSBG), headquartered in Newport, NH, creating the only community bank with a market footprint in all three Northern New England states of Maine, New Hampshire and Vermont. The combined company will have total assets of approximately $3.3 billion and a pro forma market cap of approximately $350 million with 50 branch locations serving customers and communities across three states. The Lake Sunapee Bank branches will continue to operate under the Lake Sunapee brand after the merger is completed.
Under the terms of the agreement, Lake Sunapee shareholders will be entitled to receive 0.4970 shares of Bar Harbor common stock for each share of Lake Sunapee common stock, equal to $17.17 per share, or approximately $143.9 million in the aggregate, based on the closing price for Bar Harbor common stock on May 4, 2016. Upon closing, Lake Sunapee shareholders will own approximately 41% of stock in the combined company, and Bar Harbor shareholders will own approximately 59%. The transaction is expected to be accretive to both Bar Harbor and Lake Sunapee’s earnings per share beginning in the first full year.
The transaction closed on January 13, 2017.
Four Lake Sunapee directors, including Stephen Theroux, Lake Sunapee’s President and Chief Executive Officer, will be appointed to Bar Harbor’s board of directors, bringing the total number of directors to 15 at closing. William J. McIver, current Chief Operating Officer of Lake Sunapee, will continue with the combined company as Executive Vice President – Regional President, New Hampshire and Vermont Markets.
This combination represents the joining of two high performing community banks that have demonstrated a track record of strong financial success, exceptional customer service, and commitment to the communities they serve. The expansion into Vermont and New Hampshire provides Bar Harbor with similar but complementary markets with favorable demographics, increased access to attractive core deposits, and significant revenue and cross selling opportunities.
The press release and investor presentation for the transaction can be seen here by clicking on the respective links.
Griffin Financial Group, LLC served as exclusive financial advisor to Lake Sunapee Bank Group in this transaction and rendered a fairness opinion to its Board of Directors.
For more information on this transaction, please contact Richard Quad, Senior Managing Director and Co-Head of the Financial Institutions Group, at 646.254.6387, or Stacey Weikel, Senior Vice President, at 610.478.2015.
