WSFS Financial slumps after agreeing to acquire Beneficial Bancorp

|About: Beneficial Mutual Bancorp, ... (BNCL)|By:, SA News Editor

WSFS Financial (NASDAQ:WSFS) sinks 7.2% after announcing an agreement to acquire Beneficial Bancorp (NASDAQ:BNCL) in a deal valued at $1.5B.

Transaction terms: Each share of Beneficial will be swapped for 0.3013 shares of WSFS and $2.83 cash; based on Tuesday's close for both stocks, that represents a 20% premium for BNCL shares. BNCL rises 13% to $18.40.

WSFS sees pretax merger and restructuring costs of $146M.

Sees consolidating about 25% of combined physical banking offices over the next 1-2 years due to geographic overlap; plans to reinvest $32M, or about 50% of estimated cost savings, into a 5-year plan to invest in technology and delivery systems.

Sees deal adding to WSFS EPS in first full year of combined operations, excluding one-time merger and restructuring costs; sees 8% accretion once all synergies are achieved in 2021, generating IRR of about 19%.

Deal expected to close in Q1 2019.

Upon completion of the acquisition, Gerard P. Cuddy, president and CEO of Beneficial, will become vice chairman of WSFS Bank and will join the boards of WSFS Financial and WSFS Bank along with two mutually agreed upon current directors of Beneficial’s Board.

Source: Press Release

Previously: WSFS Financial beats by $0.08, beats on revenue (July 23)

Subscribe for full text news in your inbox