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Banking industry

Union Planters Corp. Acquires Grenada Sunburst System Corp. in $2.5 Billion Merger

Strategic Insights

— 1 min read

Union Planters Corp. (NYSE:UPC), a leading financial institution, and Grenada Sunburst System Corp. (GSSC), a bank holding company, announced a merger on December 28, 1994. The agreement was approved by over 95% of shareholders from both companies, marking a significant expansion for Union Planters. The merged entity, effective December 31, 1994, will comprise a $10 billion, multi-bank holding company operating 376 banking offices across six states. The acquisition adds to Union Planters' presence in Alabama, Arkansas, Kentucky, Louisiana, Mississippi, and Tennessee.

Key Takeaways:

  • The merger approved on December 28, 1994, allows Union Planters Corp. to acquire Grenada Sunburst System Corp. for approximately $2.5 billion.
  • Over 95% of shareholders from both companies voted in favor of the transaction, securing its approval.
  • The merged entity, Union Planters, will become a $10 billion, multi-bank holding company with 376 banking offices operated by 45 banking subsidiaries across six states.
  • The acquisition includes the consolidation of certain bank functions within the six-state area, with plans to rationalize operations in 1995.
  • GSSC's shareholders will receive 1.453 shares of UPC Common Stock for each share of GSSC Common Stock they hold.
  • The merged entity will operate Sunburst Bank in Mississippi and Louisiana, with total assets of approximately $2 billion and $500 million, respectively.

Statistics:

  • Total assets: $2.5 billion (GSSC), $10 billion (Union Planters Corp. post-merger)
  • Banking offices: 376 (post-merger), 45 banking subsidiaries
  • Share conversion ratio: 9,492,975 GSSC shares = 1.453 shares of UPC Common Stock
  • Cash payment for fractional shares: TBA

Sources:

  • Union Planters Corp. (NYSE:UPC) press release, dated December 28, 1994.
  • Grenada Sunburst System Corp. (GSSC) press release, dated December 28, 1994.
  • Business Wire, "Union Planters Corp. and Grenada Sunburst System Corp. Announce Shareholders Approve Merger", December 28, 1994.

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