Business
Eastern Bankshares, Inc. and HarborOne Bancorp, Inc. Enter Into Definitive Agreement To Merge
Key Highlights: Merger solidifies Eastern’s leading position in Greater Boston while expanding into Rhode Island Financially compelling transaction with 16%
About this update from Eastern Bankshares, Inc.
[{"type":"text","content":"\nKey Highlights:\n\n\nMerger solidifies Eastern’s leading position in Greater Boston while expanding into Rhode Island\n\n\nFinancially compelling transaction with 16% EPS accretion resulting in top quartile operating profitability1\n\n\nPro forma balance sheet has robust capital, liquidity and reserves\n\n\n BOSTON & BROCKTON, Mass.--(BUSINESS WIRE)--\nEastern Bankshares, Inc. (“Eastern” or “the Company”) (Nasdaq: EBC), the holding company for Eastern Bank, and HarborOne Bancorp (“HarborOne”) (Nasdaq: HONE), the holding company for HarborOne Bank, today jointly announced they have entered into a definitive merger agreement pursuant to which HarborOne will merge with and into Eastern in a stock and cash transaction.\n\nUnder the terms of the merger agreement, which has been unanimously adopted by both boards of directors, shareholders of HarborOne will receive for each share of HarborOne common stock, at the holder’s election, either (i) 0.765 shares of Eastern common stock (the “Stock Consideration”) or (ii) $12.00 in cash (the “Cash Consideration”), subject to allocation procedures to ensure that the total number of shares of HarborOne common stock that receive the Stock Consideration represents between 75% and 85% of the total number of shares of HarborOne common stock outstanding immediately prior to the completion of the merger. The transaction is intended to qualify as a tax-free reorganization for federal income tax purposes and to provide a tax-free exchange for HarborOne shareholders for the Stock Consideration they will receive. Assuming 80% Stock Consideration, the midpoint of the range, Eastern anticipates issuing approximately 25.2 million shares of its common stock and paying an aggregate amount of $99 million in cash in the merger. Based upon Eastern’s $15.48 per share closing price on April 23, 2025, the transaction is valued at approximately $490 million.\n\n“We are excited about this partnership which bolsters our already strong and long-standing presence in Greater Boston and expands our footprint into Rhode Island,” said Bob Rivers, Executive Chair and Chair of the Board of Directors of the Company and Eastern Bank. “HarborOne is a highly recognized institution in our local market, and we share a deep commitment to customers, colleagues and communities.”\n\nDenis Sheahan, Chief Executive Officer of the Compa...