Beverly National Corp To Merge With Danvers Bancorp

Published: 17-Jun-2009

The transaction is valued at approximately $23.04 per share or $61.95 million in the aggregate.

Massachusetts-based Danvers Bancorp and Beverly National Corporation have announced the signing of an agreement and plan of merger, pursuant to which Beverly will merge with Danvers.

Under the terms of the agreement, Beverly stockholders will receive 1.66 shares of Danvers common stock in exchange for each common share of Beverly. Based on the closing price of Danvers common stock, the transaction is valued at approximately $23.04 per share or $61.95 million in the aggregate.

Kevin Bottomley, Chairman, President and CEO of Danvers, will continue in that capacity for the combined company and Donat Fournier, currently President and CEO of Beverly, will become an Executive Vice President and a member of the senior executive management team at Danvers.

Additionally, the board of directors of Danvers and Danversbank will be expanded by three members that will include three current independent members of Beverly's board of directors.

The companies expect to consummate the transaction during the fourth quarter, subject to customary closing conditions, including all necessary regulatory and stockholder approvals.

Mr. Bottomley said: “This transaction is a combination of two complementary business models which we believe will increase our earnings prospects in the near- and long-term. Beverly's 200-year history and extensive community presence will certainly strengthen our market position in Essex County, in particular. Its strong core deposits and high-quality commercial loan portfolio will be a welcome addition to our franchise.”

Beverly's President and CEO, Donat Fournier, said: “Beverly's Board of Directors determined that combining with Danvers is the right partnership for our stockholders and customers. We have a great relationship with their management and we are confident that the integration of the two companies and the transition for our customers will be virtually seamless.”

Danvers, a parent company of Danversbank with approximately $1.7 billion in assets and 16 branches in Massachusetts in the counties of Essex, Middlesex and Suffolk.

Beverly, parent company of Beverly National Bank, has approximately $485 million in assets and 8 branches in Essex County.

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