UnionBanCal Corp. (UB), a San Francisco- based bank with $89.7 billion in assets, agreed to acquire Pacific Capital Bancorp for $1.5 billion to expand in California.
UnionBanCal will pay $46 a share in cash for the Santa Barbara, California-based company, 60 percent above Pacific Capital’s $28.69 closing price on March 9, UnionBanCal said today in a statement. The deal is expected to be completed in the fourth quarter, according to the statement.
The acquisition is UnionBanCal’s biggest, topping its $307.4 million purchase of Jackson Federal Bank in 2004, according to data compiled by Bloomberg. The transaction is also among the top 10 largest bank deals announced this year, the data show. UnionBanCal, which operates 414 branches in California, Washington, Oregon, Texas and New York, was acquired by Tokyo-based Mitsubishi UFJ Financial Group Inc. (8306) for $3.61 billion in 2008.
“Santa Barbara and the central coast are very attractive regions for banking and wealth-management services, and represent an important geographic expansion,” UnionBanCal Chief Executive Officer Masashi Oka said in the statement.
Pacific Capital has $5.9 billion in assets and is the parent company of Santa Barbara Bank & Trust, which has 47 branches in California. Pacific Capital’s shares have fallen 7.7 percent in the 12 months through March 9.
Morgan Stanley and Sullivan & Cromwell LLP provided financial and legal advice to UnionBanCal. Pacific Capital was advised by Wachtell, Lipton, Rosen & Katz.
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