Beneficial Bancorp (NASDAQ:BNCL) , is a stock holding company for one of Pennsylvania largest and oldest local banks known as Beneficial Bank. Beneficial Bank specializes in consumer and commercial banking, financial services, insurance brokerage, and investment advice. Before the bell today, it was announced by WSFS Financial Corporation (NASDAQ:WSFS) that they will be acquiring Beneficial Bancorp through a deal valued at $1.5 billion.
The deal is anticipated to close some time during the 1st quarter of next year. WSFS Financial Corporation plans to use this acquisition to position themselves better in their local markets. Essentially, WSFS plans to consolidate around 25% of Beneficial Bank’s physical locations to maximize potential and minimize overhead.
The company also plans to use 50% of the assumed savings ($32 million) over the next 5-years to invest in new technology and delivery systems to keep up with customer needs. WSFS has proven in the past to be successful as we’ve seen them rise from $3 billion in assets in 2007, to over $7 billion year-to-date. In addition, WSFS has also doubled its total number of branches in that time, showing they are establishing themselves further in the market.
In regards to what shareholders of Beneficial Bancorp should expect, both board of directors have agreed upon BNCL holders receiving 0.3013 shares of WSFS Financial Corp common stock.
In addition to the common stock in WSFS, shareholders of BNCL will also receive $2.93 in cash for each share. Based on the yesterdays closing price on WSFS, this would equate to about $19.61 per share for BNCL holders.