Banc of California and PacWest announce merger
LOS ANGELES, Calif. – Banc of California, Inc. and PacWest Bancorp announced Tuesday the signing of an all-stock merger unanimously approved by the boards of directors of both companies.
The merger is expected by both parties to be completed by late 2023 or early 2024.
Under the terms of the agreement, PacWest will merge into Banc of California and Banc of California, N. A. will merge into Pacific Western Bank. The combined holding company and bank will operate under the Banc of California name and brand following the transaction.
Funding for the merger will include the sale of $400 million of new shares to private equity firms Warburg Pincus and Centerbridge Partners.
PacWest stockholders will receive 0.6569 of a share of Banc of California common stock for each share of PacWest common stock detailed the agreement.
The combined lenders will have $25.3 billion in total loans and approximately $36.1 billion in assets at more than 70 branches across California at the conclusion of the merger.
The President and Chief Executive Officer of Banc of California, Jared Wolff, will retain that role in the new company and John Eggemeyer, the current independent Lead Director of the board of PacWest, will become the Chairman of the board of the combined company.
“This transformational merger will create a robust, well-capitalized and highly liquid institution poised to deliver exceptional service to even more California businesses and communities,” said Mr. Wolff. “We believe both Banc of California and PacWest stockholders will benefit from the compelling economics of the combined company and its enhanced ability to deliver profitable and sustainable growth. Out of the gate, the combined company will have the strength and market position to support the banking needs of small and medium-size businesses in California and to capitalize on the opportunities created for stronger financial institutions in the wake of the recent banking industry turmoil.”
