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Renasant (RNST) Set to Acquire First Bancshares for $1.2B
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Renasant Corp. (RNST - Free Report) and The First Bancshares Inc. (“The First”) jointly entered into a merger agreement. Per the agreement, The First will merge into Renasant for an all-stock consideration of $1.2 billion, based on the latter’s closing stock price of $37.09 as of Jul 26, 2024.
Under the terms of the agreement, shareholders of The First Bancshares will get one share of RNST’s common stock for each share of The First. Moreover, all the options of The First will be cashed out at their in-the-money value upon the closure of the deal.
The deal, which is expected to be closed by the first half of 2025, has been approved by the shareholders of both companies and awaits requisite regulatory approvals.
The First, headquartered in Hattiesburg, Mississippi, operates through a network of 111 branches across Mississippi, Louisiana, Alabama, Florida and Georgia. As of Jun 30, 2024, the company had roughly $8 billion in total assets, $5.3 billion in total loans and $6.6 billion in total deposits.
The merger will result in a six-state Southeastern banking franchise with roughly $25 billion in total assets, $18 billion in total loans and $21 billion in total deposits as of Jun 30, 2024.
Per the terms of the deal, M. Ray “Hoppy” Cole, president and CEO of The First Bancshares, will transition into senior executive vice president and join both Renasant and Renasant Bank’s board.
Mitch Waycaster, CEO of Renasant, stated, “As with Renasant, The First has expanded into some of the most dynamic, fastest growing markets in the Southeast. Together, we create a more valuable company with the meaningful scale needed to compete in today’s operating environment.”
This deal will expand RNST’s footprint and offerings to cater to a larger customer base and improve market share through potential new customer acquisition.
The merger is anticipated to be earnings accretive immediately for Renasant (excluding one-time transaction charges) and boost key profitability and operating ratios in the long term.
Renasant has been engaged in opportunistic acquisitions to expand its business through combinational synergies. In 2022, the company acquired Republic Business Credit, a leading commercial finance company. In 2018, the company acquired Brand Group Holdings Inc. to deepen its presence in the Atlanta region. The company also purchased Metropolitan Bank and KeyWorth Bank in 2017 and 2015, respectively.
Over the past year, shares of Renasant have gained 19.7%.
Other Financial Services Firms Taking Similar Steps
Earlier this month, Eastern Bankshares Inc. (EBC - Free Report) completed its merger with Cambridge Bancorp. The deal, announced in September 2023 with a 100% stock consideration, aligns with the company’s inorganic growth strategy.
The merged private banking and wealth management divisions will work under the brand and leadership of Cambridge Trust as it has a distinct presence in its peer local markets. Other areas of the merged bank, including Commercial, Business, and Consumer Banking, will operate under EBC’s brand name.
Similarly, Victory Capital Holdings, Inc. (VCTR - Free Report) signed a definitive agreement with Amundi regarding their previously disclosed transaction, aiming to enter into mutual distribution agreements and combine the company with Amundi's US business.
Per the deal, the Amundi US business (formerly Pioneer Investments) will be merged into Victory Capital. Thus, Amundi will become a strategic shareholder of VCTR with a 26.1% economic stake, subject to customary adjustments. Further, two of Amundi’s representatives will join VCTR’s board of directors upon the closure of the transaction, subject to requisite approvals. The deal is expected to be closed in the late fourth quarter of 2024 or early 2025.
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Renasant (RNST) Set to Acquire First Bancshares for $1.2B
Renasant Corp. (RNST - Free Report) and The First Bancshares Inc. (“The First”) jointly entered into a merger agreement. Per the agreement, The First will merge into Renasant for an all-stock consideration of $1.2 billion, based on the latter’s closing stock price of $37.09 as of Jul 26, 2024.
Under the terms of the agreement, shareholders of The First Bancshares will get one share of RNST’s common stock for each share of The First. Moreover, all the options of The First will be cashed out at their in-the-money value upon the closure of the deal.
The deal, which is expected to be closed by the first half of 2025, has been approved by the shareholders of both companies and awaits requisite regulatory approvals.
The First, headquartered in Hattiesburg, Mississippi, operates through a network of 111 branches across Mississippi, Louisiana, Alabama, Florida and Georgia. As of Jun 30, 2024, the company had roughly $8 billion in total assets, $5.3 billion in total loans and $6.6 billion in total deposits.
The merger will result in a six-state Southeastern banking franchise with roughly $25 billion in total assets, $18 billion in total loans and $21 billion in total deposits as of Jun 30, 2024.
Per the terms of the deal, M. Ray “Hoppy” Cole, president and CEO of The First Bancshares, will transition into senior executive vice president and join both Renasant and Renasant Bank’s board.
Mitch Waycaster, CEO of Renasant, stated, “As with Renasant, The First has expanded into some of the most dynamic, fastest growing markets in the Southeast. Together, we create a more valuable company with the meaningful scale needed to compete in today’s operating environment.”
This deal will expand RNST’s footprint and offerings to cater to a larger customer base and improve market share through potential new customer acquisition.
The merger is anticipated to be earnings accretive immediately for Renasant (excluding one-time transaction charges) and boost key profitability and operating ratios in the long term.
Renasant has been engaged in opportunistic acquisitions to expand its business through combinational synergies. In 2022, the company acquired Republic Business Credit, a leading commercial finance company. In 2018, the company acquired Brand Group Holdings Inc. to deepen its presence in the Atlanta region. The company also purchased Metropolitan Bank and KeyWorth Bank in 2017 and 2015, respectively.
Over the past year, shares of Renasant have gained 19.7%.
Renasant Corporation Price
Renasant Corporation price | Renasant Corporation Quote
Currently, RNST carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Financial Services Firms Taking Similar Steps
Earlier this month, Eastern Bankshares Inc. (EBC - Free Report) completed its merger with Cambridge Bancorp. The deal, announced in September 2023 with a 100% stock consideration, aligns with the company’s inorganic growth strategy.
The merged private banking and wealth management divisions will work under the brand and leadership of Cambridge Trust as it has a distinct presence in its peer local markets. Other areas of the merged bank, including Commercial, Business, and Consumer Banking, will operate under EBC’s brand name.
Similarly, Victory Capital Holdings, Inc. (VCTR - Free Report) signed a definitive agreement with Amundi regarding their previously disclosed transaction, aiming to enter into mutual distribution agreements and combine the company with Amundi's US business.
Per the deal, the Amundi US business (formerly Pioneer Investments) will be merged into Victory Capital. Thus, Amundi will become a strategic shareholder of VCTR with a 26.1% economic stake, subject to customary adjustments. Further, two of Amundi’s representatives will join VCTR’s board of directors upon the closure of the transaction, subject to requisite approvals. The deal is expected to be closed in the late fourth quarter of 2024 or early 2025.