UST Corp.. Sets Agreement To Acquire Walden Bancorp
May 16, 2011
BOSTON -- UST Corp. said it signed a definitive agreement to acquire Walden Bancorp Inc. in an exchange of shares valued at about $161 million. Under the terms of the deal, UST, a bank-holding company, will exchange 1.9 common shares for each common share of Walden. The transaction, which is expected to close during the first quarter of 2012, will be accounted for as a pooling of interests. Neil Covey, UST's president and chief executive, said UST expects to record a one-time pretax charge of about $13.5 million for acquisition-related costs in the first quarter of 2012, but said that the deal should be accretive to earnings ``within a few months'' afterward. The acquisition will expand UST's Boston area presence by adding 17 more branches to the 28 it already owns, Mr. Covey said. No personnel changes are anticipated. UST, with $2 billion in assets, has as its principal banking subsidiary USTrust. Walden, with $1 billion in assets, is the holding company for two community banks, Bank of Braintree and Co-operative Bank of Concord, which together employ 330 people. The deal is subject to approval by UST and Walden shareholders, as well as federal and state bank-regulatory authorities. On the Nasdaq Stock Market Friday, UST shares closed at $15.75, down 50 cents, while Walden shares soared $7.75, or 38%, to $28.25.
