Busey Bank and M & M banks are merging. Busey will acquire Merchants & Manufacturers in a deal that is subject to approval and expected to be completed in the second quarter of next year. The cash-cum-stock deal is valued at approximately $41.6 million.
According to the press release, under the terms of the transaction, M&M stockholders will have the right to select receiving either $117.74 in cash, 5.7294 shares of First Busey common stock, or a combination of $34.55 in cash and 4.0481 shares of First Busey common stock. Shareholder elections are subject to distribution, such that total consideration consists of nearly 71% First Busey common stock and 29% cash.
Busey bank began in central Illinois and has expanded into the Chicago suburbs.
The combined banks would result in combined assets of $12.7 billion.
There are four locations of M&M banks around Joliet area. Once the deal is complete, M&M banks will become part of Busey Bank and have more than 60 locations of which 21 will be in Central Illinois and 18 in the Chicago suburbs and 20 in the St. Louis area plus one in Indianapolis and three in Southwest Florida.