Wachovia Acquires Republic Security Financial for $344 Million

Strategic Insights -

Wachovia Corporation, a leading financial holding company, has announced a definitive agreement to acquire Republic Security Financial Corporation, a bank holding company based in West Palm Beach, Florida. The acquisition is structured as a purchase with a total purchase price of $344 million in Wachovia common shares. The transaction is subject to approval by regulatory authorities and RSFC shareholders and is expected to close in the first quarter of 2001. The acquisition will enhance Wachovia's presence in Florida, making it the 10th largest bank in the state based on deposits.

Key Takeaways:

  • Wachovia will acquire Republic Security Financial for $344 million in Wachovia common shares.
  • The agreement provides for a tax-free exchange of Wachovia common shares valued at $7.00 for each RSFC common share with an exchange ratio of a minimum of 0.1245 and a maximum of 0.1521 Wachovia common shares for each RSFC share.
  • Republic Security Financial has assets of $3.4 billion and deposits of $2 billion, with a presence in 11 counties and 99 banking facilities.
  • The acquisition will result in an increase in Wachovia's presence in Florida, with over 178,000 new customers joining the bank.
  • Wachovia will eliminate redundant support functions and facilities and expand product offerings to Republic Security's customer base, achieving significant cost and revenue synergies.
  • Stanhope A. Kelly, head of Wachovia's Banking Division, stated that the merger will bring opportunities to offer Wachovia services, including retail financial services, asset and wealth management, and commercial banking.
  • Rudy E. Schupp, chairman, CEO, and president of Republic Security, will become chairman of Florida Banking for Wachovia.
  • Wachovia Corporation, with dual headquarters in Atlanta and Winston-Salem, N.C., is a leading financial holding company serving regional, national, and international markets.

Statistics:

  • Total purchase price: $344 million
  • Exchange ratio: minimum 0.1245, maximum 0.1521 Wachovia common shares for each RSFC share
  • Republic Security Financial assets: $3.4 billion
  • Republic Security Financial deposits: $2 billion
  • Number of banking facilities: 99
  • Number of employees: 850
  • Number of branches: 119
  • Number of counties: 11
  • Wachovia's total assets as of September 30, 2000: $72 billion

Sources:

  • PR Newswire: "Wachovia Corporation and Republic Security Financial Corporation Announce Definitive Agreement for Wachovia to Acquire Republic Security Financial"
  • Wachovia Corporation: "Wachovia Corporation Completes Acquisition of Republic Security Financial Corporation"