People’s United Financial Inc. (PBCT), the Bridgeport, Connecticut-based bank that made four acquisitions in 2010, agreed to buy 56 branches from Citizens Financial Group Inc. (CIFI) to expand on New York’s Long Island.
Fifty-two of the branches are in Stop & Shop supermarkets and four are traditional offices, according to a statement today from People’s United, which is assuming $325 million in deposits. The transaction is valued at $3.25 million, the bank said.
All the branches are in New York state, mostly on Long Island, with others in Westchester County and New York City, according to the statement. People’s United was advised by Jefferies Group Inc. and law firm Simpson Thacher & Bartlett LLP. Providence, Rhode Island-based Citizens Financial was advised by Keefe, Bruyette & Woods Inc.
“We see a clear and immediate opportunity to increase the deposits in the acquired branches, providing additional funding for our strong franchise-wide loan growth,” Chief Executive Officer John P. Barnes said in the statement.
People’s United rose 0.2 percent to $12.63 at 9:55 a.m. in New York. Citizens Financial is owned by Royal Bank of Scotland Group Plc (RBS), the lender bailed out by the British government in 2008.
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