MB Financial To Acquire American Chartered Bancorp For About $449 Mln

(RTTNews) - MB Financial Inc. (MBFI) said Sunday that it agreed to acquire a privately-held American Chartered Bancorp, Inc. and its wholly owned bank subsidiary, American Chartered Bank, in a stock and cash transaction valued at about $449 million, or $9.30 per share.

Approximately $100 million of the total consideration will be paid in cash, with the remainder in MB Financial common stock at a fixed exchange ratio of 0.2732 shares of MB Financial common stock for each American Chartered share. The receipt of shares of MB Financial common stock in exchange for American Chartered stock is expected to be tax-free for American Chartered shareholders.

The merger is subject to regulatory approvals and approval by American Chartered stockholders. The merger is expected to close around June 30, 2016. Excluding the impact of transaction costs, the merger is expected to be immediately accretive to MB Financial's annual GAAP and cash earnings per share.

Upon completion of the merger, American Chartered Chairman Robert Riter will join the MB Financial Board of Directors.

The definitive agreement was unanimously approved by the boards of MB Financial and American Chartered.

Founded in 1987, American Chartered is a privately-held commercial bank focused on serving Chicago's middle-market and emerging middle-market business community. American Chartered operates 15 banking offices and has approximately $2.8 billion in total assets, $2.2 billion in deposits, of which half are non-interest-bearing, and $2.0 billion in loans.