UST Sets $161 Million Pact To Buy Another Bank Firm
May 12, 2011
BOSTON -- UST Corp. agreed to acquire fellow Massachusetts concern Walden Bancorp Inc. in a stock swap valued at $161 million, the second combination of two small Northeast banks is as many days. The UST-Walden deal announcement came a day after Summit Bancorp of Princeton, N.J., agreed to acquire B.M.J. Financial Corp., in order to expand in the New Jersey market, ``prominent''``prominent''``prominent``in a stock swap worth about the same as the UST-Walden agreement. Under the terms of the transaction, UST will exchange 1.9 common shares for each common share of Walden. On the Nasdaq Stock Market Friday, Walden shares jumped $7.75 to $28.25. Based on UST's closing price Thursday of $16.25, Walden shareholders would receive stock worth about $30.875 for each of their shares. UST shares, though, fell 50 cents to $15.75 on Friday. USTthe holding company for USTrust banks in Massachusetts and Connecticut, said it expects to record a one-time pretax charge of about $13.5 million of acquisition related costs in connection with the transaction. The Boston company said the transaction will expand its customer base in eastern Massachusetts without resulting in higher operating expenses. Walden, based in Acton, Mass., is the holding company for Co-Operative Bank of Concord and Bank of Braintree. UST said the Walden acquisition, in addition to UST's pending acquisition of 20 Boston area branches from BankBoston, will allow it to become a $3.8 billion holding company with 65 branches in the greater Boston area.
