Citizens Financial Group Agrees to Acquire Investors Bancorp for $3.5B

On Jul 28, 2021

Citizens Financial Group, Inc. agreed to acquire Investors Bancorp, Inc. in a deal valued at $3.5 billion. Citizens, which is based in Providence, RI, will acquire all of the outstanding shares of Short Hills-based Investors Bancorp for a combination of stock and cash. The transaction is expected to close in the first or second quarter of 2022.

Investors has $26.8 billion in assets, $20 billion in deposits, and a network of over 156 retail branches throughout New Jersey and New York. Meanwhile, Citizens has $185.1 billion in assets and approximately 1,000 branches in 11 states in the New England, Mid-Atlantic and Midwest regions.

The acquisition of Investors enhances Citizens’ banking franchise, adding an attractive middle market/ small business and consumer customer base while building its physical presence in the greater New York City and Philadelphia metropolitan areas and across New Jersey.

The acquisition complements Citizens’ recently announced acquisition of HSBC East Coast branches and national online deposits which is expected to close in first quarter 2022.

“The acquisition of Investors, following on the heels of the acquisition of HSBC’s East Coast branches, further strengthens our formidable franchise in the northeast, together adding roughly one million customers and boosting our near and long-term growth potential,” said Bruce Van Saun, chairman and CEO of Citizens. “We are confident in our ability to successfully integrate these acquisitions, and to over time deliver the same attractive offerings to customers and strong financial performance in the New York City metro region and New Jersey as we do in other major metro areas we serve.”

Key members of Investors’ management team are expected to join Citizens, ensuring business and client continuity. Upon closing of the transaction, Kevin Cummings, Investors’ chairman and CEO, and Michele N. Siekerka, president and CEO of the New Jersey Business & Industry Association, who are current members of the board of directors of Investors, are expected to join Citizens’ board of directors.

“Joining Citizens, with its broad capabilities, scale and commitment to excellence in customer service opens exciting opportunities for our combined company,” said Cummings. “Citizens shares Investors’ deep commitment to serving customers, supporting colleagues and giving back to local communities. Our local-market expertise and personal touch will align well with Citizens’ approach and together we will drive long-term value for all our stakeholders.”

Under the terms of the agreement and plan of merger, Investors shareholders will receive 0.297 of a share of CFG common stock and $1.46 in cash for each share of Investors they own. Following completion of the transaction, former Investors shareholders will collectively own approximately 14% of the combined company.

Morgan Stanley & Co. LLC acted as financial advisor to Citizens in connection with the transaction and Sullivan & Cromwell, LLP served as legal advisor. Keefe, Bruyette & Woods, A Stifel Company, served as lead financial advisor; Piper Sandler & Co and Lazard also served as financial advisors, and Luse Gorman, PC served as legal advisor to Investors.

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