California-based Mechanics Bank has completed its previously announced acquisition of Rabobank for about $2.1bn.
The Californian lender particularly acquired Rabobank’s retail, business banking, commercial real estate, mortgage and wealth management businesses.
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The combined entity now has 144 branches and more than $17bn in total assets. The deal makes it the fifth largest state-based lender in California.
Mechanics Bank chairman of the Board Carl Webb said: “We believe this strategic combination of two highly complementary franchises will unlock significant value for our shareholders, clients, employees and the many communities served by the new Mechanics Bank.
“We are pleased to have closed such a major transaction less than six months since announcing our acquisition plans, and we now look forward to putting the tremendous resources of this unique financial institution to work for all of our constituents.”
In March this year, Mechanics Bank signed definitive agreement with Rabobank’s parent company Rabobank Group to acquire the lender.
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By GlobalDataThe scope of the acquisition excluded Rabobank’s food and agribusiness assets, which the Dutch lender will continue to hold.
Additionally, Rabobank Group secured a 9.9% stake in Mechanics Bank, as part of the deal.
John DeCero, the former president and CEO of Mechanics Bank, will be in charge of the commercial banking, wealth management and indirect auto finance of the combined entity.
Mark Borrecco, who formerly served CEO of Rabobank, will manage the retail banking and consumer lending sections of the bank.
Mechanics Bank took legal assistance from Wachtell, Lipton, Rosen & Katz for the transaction. Credit Suisse served as its financial advisor.
