BB&T Corporation to Acquire FirstSpartan Financial Corp. in $103.9 Million Stock Swap

Strategic Insights -

Winston-Salem-based BB&T Corporation, the nation's 18th largest financial holding company, plans to acquire FirstSpartan Financial Corp. of Spartanburg, S.C., in a $103.9 million stock swap. The acquisition expands BB&T's presence in South Carolina's rapidly-growing Upstate region and increases its South Carolina assets to $5.8 billion.

Key Takeaways:

  • BB&T will acquire FirstSpartan Financial Corp. in a $103.9 million stock swap, with an exchange ratio of one BB&T share for each FirstSpartan share.
  • The acquisition expands BB&T's presence in South Carolina's Upstate region, home to over 500 manufacturing companies, including BMW, which has announced a $300 million expansion.
  • FirstSpartan operates 11 banking offices in Spartanburg and Greenville counties, with $591 million in assets.
  • The acquisition will increase BB&T's South Carolina assets to $5.8 billion and give it a stronger presence in the region, ranking third in market share in South Carolina and first in Greenville and Spartanburg counties.
  • FirstSpartan customers will be introduced to BB&T's wider array of core banking products, as well as new products and services such as investments, insurance, retail brokerage, and trust.
  • The merger is subject to the approval of FirstSpartan shareholders and banking regulators and is expected to be completed in the first quarter of 2001.

Statistics:

  • $103.9 million: The value of the stock swap for the acquisition of FirstSpartan Financial Corp.
  • $591 million: The assets of FirstSpartan Financial Corp.
  • $5.8 billion: The expected increase in BB&T's South Carolina assets after the acquisition
  • $1.9 billion: European investment received by the Greenville-Spartanburg-Anderson metropolitan statistical area from 1998 to 1999
  • $300 million: BMW's announced expansion in South Carolina
  • 500+: Number of manufacturing companies in Spartanburg County alone
  • 20: Number of autonomous regions in the BB&T network

Sources:

  • BB&T Corporation press release, dated September 6, 2000
  • FirstSpartan Financial Corp. press release, dated September 6, 2000