Alternative Investments: Pacific Premier Bancorp Buys Opus Bank
Deal Boosts PPBI Assets to $20 Billion
Pacific Premier Bancorp (NASDAQ: PPBI), the holding company of Pacific Premier Bank, announced plans to purchase and Opus Bank (NASDAQ: OPB). Terms of the deal set the value at about $1.0 billion, or $26.82 per share. Pacific Premier expects the transaction to be 14% accretive to EPS in 2021 with a 1.8-year earn back period to tangible book value per share based.
Opus is headquartered in Irvine, California with $8.0 billion in total assets, $5.9 billion in gross loans and $6.5 billion in total deposits as of December 31, 2019.
Pacific Premier Bancorp Expands With Opus Buy
Opus has 46 banking offices located throughout California, Washington, Oregon, and Arizona.
The transaction will increase Pacific Premier’s total assets to roughly $20 billion on a pro forma basis as of December 31, 2019.
“We are excited to announce this transformative merger that we believe will create one of the premier commercial banks in the Western United States,” said Steven R. Gardner, Chairman, President and CEO of Pacific Premier. “The combination with Opus provides us with a meaningful presence in attractive major metropolitan markets with operational scale, a complementary set of banking products and services, and improved revenue and business diversification. As a result of this transaction, we believe we will be well-positioned to generate profitable growth in the future and to benefit the combined institution’s shareholders.”
Holders of Opus common stock will have the right to receive 0.90 shares of Pacific Premier common stock for each share of Opus common stock they own. Existing Pacific Premier shareholders will own approximately 63% of the outstanding shares of the combined company, and Opus shareholders are expected to own approximately 37%.
The transaction is expected to close in the second quarter of 2020, subject to satisfaction of customary closing conditions, including regulatory approvals and shareholder approval from Pacific Premier and Opus shareholders.
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