Danvers Bancorp Inc. and Beverly National Corp. have signed a $61.95 million agreement and plan of merger, merging Beverly National with and into Danvers Bancorp.
Under the terms of the agreement, Beverly National stockholders will receive 1.66 shares of Danvers Bancorp common stock in exchange for each common share of Beverly, according to a statement from Danvers.
The transaction value was priced based on the closing price of Danvers common stock on June 16.
Beverly National Bank’s approximately $350 million in deposits will result in Danversbank’s market share increasing. Danvers is currently 12th in the state. The merger will make it the ninth largest Massachusetts bank in terms of marketshare.
Kevin T. Bottomley, president and CEO of Danvers Bancorp, told Banker & Tradesman that the purchase helped shore up Danversbank’s hold on the geographical turf it now occupies, but also brought the bank into new towns and – obviously – gave it a stronger position in Beverly. The deal also made sense in that both Beverly National and Danversbank, as commercial banks, had a similar culture and approach to the business, Bottomley said.
Upon completion of the transaction, Danvers will become the sixth-largest publicly traded banking institution headquartered in Massachusetts, with total assets of more than $2.2 billion.
Bottomley will continue as chairman, president and CEO for the combined company and Donat A. Fournier, currently president and CEO of Beverly, will become an executive vice president and a member of the senior executive management team at Danvers. The board of directors of Danvers and Danversbank will be expanded by three members, to include three current independent members of Beverly’s board of directors.
The companies expect to complete the transaction during the fourth quarter, subject to customary closing conditions, including all necessary regulatory and stockholder approvals.
Danvers was advised by Endicott Financial Advisors L.L.C. and Goodwin Procter LLP. Beverly was advised by Sandler O’Neill + Partners L.P. and Cranmore, FitzGerald & Meaney.
Banker & Tradesman Staff Writer Laura Schreier contributed to this report.
