Rockland Trust to buy Milford National Bank for $54M
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Milford National Bank's main location on East Main Street in Milford
Milford National Bank and Trust Co. is being acquired by Rockland Trust for $54.2 million in a cash-and-stock deal, the financial institutions jointly announced Tuesday.
According to the release, Independent Bank Corp., the parent of Rockland Trust, is acquiring MNB Bancorp., the parent of Milford National. The deal is expected to close in the fourth quarter.
Rockland Trust, already with a presence in Milford and relationships in the surrounding area, will broaden its reach in the Worcester County by absorbing Milford National’s businesses and three branches: two in Milford and one in Mendon.
As of March 31, the Milford-based bank had $301 million in deposits, $308 million in loans and $167 million in assets in its wealth management business.
Kevin Meehan, chairman of the Milford National board and owner of Central Mass. car giant Imperial Cars, said the bank is pleased to join Rockland Trusts’ brand.
“Our customers will enjoy the greater range of products, services, and convenience that Rockland Trust offers,” Meehan said.
Christoher Oddleifson, President and CEO of Independent Bank Corp. and CEO of Rockland Trust called the transaction the natural expansion of Rockland into Worcester County.
“We look forward to welcoming Milford National colleagues and customers to Rockland Trust,” he said.
Per the agreement, each share of Milford National will be exchanged for either 3.55 shares of Independent’s common stock or $275 in cash, subject to customer pro-ration resulting in an aggregate stock/cash consideration of 75 percent stock and 25 percent cash.
The transaction is intended to qualify as a tax-free reorganization for federal income tax purposes and to provide a tax-free exchange for MNB shareholders who receive Independent common stock as consideration.
The transaction price is based on Independent’s May 25 per share closing price of $76.80.
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