Berkshire and Brookline finalize a $1.1 billion merging deal
Brookline Bancorp and Berkshire Hills Bancorp Merge in $1.1 Billion Deal
In a significant move for the banking sector, Brookline Bancorp and Berkshire Hills Bancorp have announced a merger worth $1.1 billion. The merged entity will operate under Berkshire's corporate framework but will adopt a new name and ticker symbol on the NYSE, yet to be disclosed.
The new combined bank will be based in Boston and will have a five-state reach. The merger structure involves Brookline merging into Berkshire, with Berkshire as the surviving corporation. This means that the combined entity will continue under Berkshire's corporate framework but will adopt new branding and a new ticker symbol on the NYSE post-merger.
The ownership distribution of the combined bank will be approximately 51-55% for Berkshire shareholders and 45% for Brookline shareholders. The combined bank will have approximately $24 billion in assets and 148 branches.
Paul Perrault, CEO of Brookline, will serve as the president and CEO of the combined bank after the deal closes. The combined bank's board will consist of 16 directors, with eight from Brookline and eight from Berkshire, led by David Brunelle.
Key executive roles in the combined bank include Jacqueline Courtwright as HR chief, William Gordon Prescott as general counsel, Mark Meiklejohn as Chief Credit Officer, Michael McCurdy as chief banking officer, Sean Gray as COO, and Michael Goldrick, Carl Carlson, Nitin Mhatre, James Hickson, James Morris, Elizabeth Mineo, William Tsonos, and Darryl Fess as regional presidents.
The merger is expected to close by the end of H2 2025, subject to regulatory and shareholder approvals. The deal aims to issue $100 million in common stock, at $29 per share, to new investors as part of a capital raise that's expected to close on Thursday.
Brookline will be the charter holder, while Berkshire will be considered the legal acquirer, and shareholders of that bank will own 51% of the new entity. The merged bank is expected to have a top-10 deposit share in 14 of 19 target metro areas. The combined bank will be divided into six regions for efficiency purposes.
Nitin Mhatre, CEO of Berkshire, called the deal a "transformational milestone." The exact new name and ticker symbol for the combined bank will be announced prior to closing.
The merger between Brookline Bancorp and Berkshire Hills Bancorp, worth $1.1 billion, will unite the finance and business sectors, operating under Berkshire's framework but adopting new branding and a ticker symbol post-merger. The new combined bank, with approximately $24 billion in assets and 148 branches, aims to have a top-10 deposit share in 14 of 19 target metro areas within the industry.
