Banker & Tradesman file photos
Boston-based Eastern Bank says it has completed its acquisition of Brockton-based HarborOne. The deal was officially closed shortly after midnight on Nov. 1.
“This partnership will create a $30 billion locally-based, community-focused organization that bolsters Eastern’s leading presence in Greater Boston and expands our branch network into Rhode Island,” Eastern Bank Executive Chair Bob Rivers said in a statement. “We look forward to leveraging the combination of our organizations to add greater value for our colleagues, customers, community partners and shareholders.”
Eastern issued a total of approximately 26,936,260 shares of Eastern common stock in the merger, including in settlement of awards of HarborOne performance-based stock units and time-based restricted stock awards outstanding. 0.765 shares of Eastern common stock per share were issued of HarborOne common stock, and cash instead of any fractional share to stockholders. $12 per share in cash of HarborOne common stock was issued to stockholders who opted to receive cash considerations in the merger. The cash consideration was funded through cash on hand at Eastern, including a $125 million dividend from the bank.
In line with the merger agreement, Eastern and Eastern Bank appointed Joseph F. Casey and Michael J. Sullivan to become directors of Eastern Bank and its holding company, with Casey’s term as a director of Eastern to expire in 2027 and Sullivan’s term to expire in 2026. Casey was appointed a member of the Risk Management Committee and was also appointed to the board of trustees of the Eastern Bank Foundation. Sullivan was appointed a member of the Nominating and Governance Committees of the boards of directors of Eastern and Eastern Bank and a member of the Trust Committee of Eastern Bank. Casey was the president and CEO of HarborOne, while Sullivan was the chairman of the board.
“This is an exciting time as our two banks come together,” Casey said in a statement. “We share a deep commitment to colleague development, personalized customer service and community engagement. I am thrilled to be joining the Eastern Boards and look forward to our future together.”
