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Rabobank acquires California-based Mid-State Bank & Trust
Network expanded with 48 offices
Tags: Excerpts from the Windmill
ARROYO GRANDE, California - The Netherlands-based international cooperative financial services provider Rabobank has signed an acquisition agreement through which Mid-State Bank & Trust will become part of the Rabobank Group. Upon completion of the regulatory process, which is expected in the second quarter of 2007, Mid-State will be merged into Rabobank’s community banking subsidiary in California.
The transaction in which Rabobank, which specializes in community banking and agricultural finance, will acquire all of the shares of Mid-State Bank shares, pegs the purchase price to $851 million and gives Mid-State shareholders a 23 percent premium over the current share price.
An independent community bank, Mid-State Bank & Trust serves California's San Luis Obispo, Santa Barbara, and Ventura Counties. Since opening its doors in 1961, Mid-State has grown to 41 retail offices and 7 commercial loan centres, serving more than 100,000 households.
Rabobank will retain all 41 Mid-State branches and plans to invest further in the development of the bank. Mid-State will continue to operate as a local bank within the Rabobank organization.
The North American subsidiary of Rabobank has 40 retail and commercial banking services locations in communities, from the Imperial Valley through the Central Valley and up to the Sacramento metropolitan area. Rabobank entered California retail banking with the 2002 acquisition of Valley Independent Bank. In January 2006, Rabobank acquired Community Bank of Central California, adding 14 branches to its then 26-branch network.