- Sabadell United Bank, Banco Sabadell’s retail banking subsidiary in Florida, will be integrated into the IBERIABANK Corporation group, a multi-state bank headquartered in Louisiana.
- Banco Sabadell will continue its Corporate Banking and International Private Banking activities through its American branch in Florida.
- The transaction will generate a net capital gain of €447M aprox.
Banco Sabadell has reached an agreement with IBERIABANK Corporation for the sale of Sabadell United Bank, Sabadell’s retail banking subsidiary that has operated in Florida since 2007. The transaction, closed for a total of $1,025M (€967M aprox.), represents a multiple of 1.95 times Tangible Book Value, allowing Banco Sabadell to achieve a net capital gain of €447M aprox.
The agreement reached states that IBERIABANK Corporation will make a minimum cash payment of $803M and the remaining difference will be paid in IBERIABANK Corporation shares. In the event that the remaining difference represents more than 4.9% of the total capital stock of IBERIBANK Corporation, Banco Sabadell will receive 4.9% of the total capital stock of IBERIABANK Corporation plus the outstanding difference in cash.
The transaction is expected to close in the second half of this year, once the necessary approvals have been received from the regulatory authorities.
Sabadell United Bank has been a successful project, launched in 2007 with the acquisition of TransAtlantic Bank. Since then, a combination of both strong organic and inorganic growth, through successive acquisitions in South Florida, have resulted in Sabadell United managing a volume of $4.2Bn in loans and $5.2Bn in customer funds.
Following the operation, Banco Sabadell will continue developing its core activities of Corporate Banking and International Private Banking through its American branch in Miami. The branch currently manages over $10Bn of business volumes with a team of approximately 200 employees, and has a notable market share in the tourism, infrastructure, and renewable energy sectors. The Banco Sabadell branch in Miami is also Banco Sabadell’s Corporate Banking operations center for Latin America, with the exception of Mexico where Sabadell runs a fully operational subsidiary bank.
Banco Sabadell’s President, Josep Oliu, has commented, “this is an excellent transaction that materializes part of the value we have created in the United States and that will allow us to strengthen the bank to grow in our priority markets.”
IBERIABANK Corporation is a financial holding company with total consolidated assets of $21.7 billion, total deposits of $17.4 billion and shareholders’ equity of $2.9 billion as of December 31, 2016. IBERIABANK Corporation's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC". IBERIABANK Corporation’s market capitalization was approximately $3.8 billion as of February 24, 2017. IBERIABANK Corporation operates 304 combined offices, including 199 bank branch offices and three loan production offices in Louisiana, Arkansas, Alabama, Tennessee, Texas, Florida, and Georgia, 24 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 69 locations in 10 states. IBERIABANK Corporation has eight wealth management locations in four states and one IBERIA Capital Partners L.L.C. office in Louisiana.