People's United Financial To Acquire Suffolk Bancorp In $402 Mln Deal

(RTTNews) - People's United Financial, Inc. (PBCT) Monday announced a definitive agreement to acquire Suffolk Bancorp (SCNB) of Riverhead, NY, the holding company for Suffolk County National Bank, in a 100 percent stock transaction valued at approximately $402 million. People's United Financial is the holding company for People's United Bank, N.A.

People's United expects the transaction to be accretive to earnings, excluding one-time costs, with an IRR of approximately 17 percent and a tangible book value earn-back under five years. The transaction is expected to close late in the fourth quarter of 2016.

Suffolk Bancorp shareholders will receive 2.225 shares of People's United Financial stock for each Suffolk Bancorp share. The transaction is valued at $33.55 per Suffolk Bancorp share, based on the closing price of People's United's common stock on June 24.

Howard Bluver, president and chief executive officer of Suffolk Bancorp will join People's United Bank as New York market president.

People's United Financial said, "With the 9th largest market share in Suffolk County, a solid relationship-banking approach and loyal, long-tenured customers, Suffolk County National Bank's strong Long Island presence complements our previous acquisitions and organic growth in the New York Metro area."