During the pre-market trading session, Macatawa Bank Corporation (NASDAQ: MCBC) is experiencing a notable upswing of 38.17%, presently assessed at $13.72 per share. This surge in MCBC shares can be directly attributed to the recent declaration of a merger proposal.
Macatawa (MCBC) has officially disclosed its entry into a definitive merger deal with Wintrust Financial Corporation. As per the provisions of this agreement, Wintrust will only purchase Macatawa through stock transactions. With its main office located in Holland, Michigan, Macatawa is the parent company of Macatawa Bank, a state-chartered financial institution with 26 full-service branches serving the towns of Kent, Ottawa, and northern Allegan counties, which includes Grand Rapids.
Macatawa offers Wintrust a great chance to expand into West Michigan by establishing a strong financial institution. Featuring a sturdy core deposit base, outstanding asset quality, a customer-centric culture, and a dedicated leadership team, Macatawa will significantly bolster Wintrust’s competitive presence within the community.
Conversely, Wintrust offers Macatawa the means to maintain and enhance its distinctively tailored consumer and commercial community presence in the West Michigan area. This will be achieved by retaining the Macatawa Bank name, its essential personnel, branches, and a legally constituted community bank board, operating as a separately chartered bank.
Macatawa anticipate a seamless transition to becoming Wintrust’s 16th thriving community bank subsidiary, and the sole subsidiary situated within Michigan. Subject to potential adjustments as outlined in the merger agreement, the aggregate purchase price for Macatawa shareholders is currently estimated to be approximately $510.3 million, equating to $14.85 per share.
In this transaction, each outstanding share of Macatawa common stock will be converted into the right to receive merger consideration paid in shares of Wintrust common stock, based on Wintrust’s average trading price at closing, as determined in accordance with the merger agreement. The transaction is anticipated to conclude in the latter half of 2024.
