March 19, 2019
Walnut Creek, CA-based Mechanics Bank will acquire Roseville, CA-based Rabobank, N.A. for a total consideration of roughly $2.1 billion. Rabobank, N.A. is a subsidiary of Rabobank Group.
The combined entity would operate under the Mechanics Bank name, with 144 branches and in excess of $17 billion in total assets. The transaction, which is expected to close 3Q 2019, has been approved by each party’s authorizing board of directors.
Mechanics Bank’s John DeCero says, “Bringing Rabobank, N.A. together with Mechanics Bank gives us a great opportunity to fill an established gap between the big banks and smaller community banks throughout the state.”
As part of the total consideration payable in the transaction, Rabobank Group will receive 9.9% of the outstanding shares of Mechanics Bank after giving effect to the transaction. Currently, 79% of Mechanics Bank’s outstanding shares are owned by Ford Financial Fund II.
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