Business
Eastern Bankshares, Inc. and Century Bancorp, Inc. Enter Into Definitive Agreement To Merge
Key Highlights: Merger creates $22 billion combined franchise and solidifies Eastern’s leading position in Boston and Eastern Massachusetts Financially
About this update from Eastern Bankshares, Inc.
[{"type":"text","content":"\nKey Highlights:\n\n\nMerger creates $22 billion combined franchise and solidifies Eastern’s leading position in Boston and Eastern Massachusetts\n\n\nFinancially compelling transaction with 55% EPS accretion on a fully synergized basis\n\n\nEastern announces 33% increase to quarterly dividend\n\n\n BOSTON & MEDFORD, Mass.--(BUSINESS WIRE)--\nEastern Bankshares, Inc. (“Eastern”) (Nasdaq Global Select Market: EBC), the stock holding company for Eastern Bank, and Century Bancorp, Inc. (Nasdaq: CNBKA) (“Century”), the stock holding company for Century Bank and Trust Company (“Century Bank”), today jointly announced they have entered into a definitive all-cash merger agreement with an aggregate transaction value of $642 million. This in-market transaction comes less than six months after Eastern’s initial public offering that raised approximately $1.7 billion in equity capital.\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210407006031/en/\nUnder terms of the merger agreement, which has been unanimously approved by both boards of directors, Century shareholders will receive $115.28 in cash for each share of Century Bancorp, Inc.’s common stock. The acquisition is expected to close in the fourth quarter of 2021, subject to certain conditions, including the receipt of required regulatory approvals, shareholder approval, and other standard conditions. Century’s directors and executive officers and certain of their affiliates have agreed to vote in favor of the merger. Upon closing, Eastern intends to merge Century into Eastern with Eastern continuing as the surviving entity and concurrently merge Century Bank into Eastern Bank and convert Century customers to the Eastern platform with Century Bank branches assuming the Eastern Bank name.\n\n“We’ve admired Century’s success since its founding by Marshall Sloane in 1969 and today they are New England’s largest family-run bank. Under the leadership of Barry R. Sloane and Linda Sloane Kay, the Century Bank brand has continued to rise in prominence and it was a proud moment for us when they communicated they wanted to partner with Eastern,” said Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern Bankshares, Inc. and Eastern Bank. “We are excited for the opportunities this agreement creates and believe our co...