TD Banknorth Inc. (NYSE: BNK) and Hudson United Bancorp (NYSE: HU) announced Tuesday that they have signed a definitive agreement for TD Banknorth to acquire Hudson United for approximately $1.9 billion in cash and TD Banknorth stock.
“This acquisition is consistent with our growth strategy and will significantly expand our franchise in both Connecticut and eastern New York while providing us with a presence in the fast-growing markets of New Jersey and Philadelphia,” said William J. Ryan, TD Banknorth’s chairman, president and chief executive officer.
Hudson United Bancorp is the multi-state bank holding company for Hudson United Bank, which has 204 offices in New Jersey, New York, Connecticut and Pennsylvania.
TD Banknorth Inc. is headquartered in Portland, Maine and a majority-owned subsidiary of TD Bank Financial Group. At March 31, 2005, TD Banknorth had $32.1 billion of total consolidated assets and provided financial services to more than 1.3 million households in the Northeast. TD Banknorth’s banking subsidiary operates banking divisions in Maine, New Hampshire, Massachusetts, Connecticut, Vermont and upstate New York. It also operate subsidiaries in insurance and other financial services.
On a pro forma basis, the transaction will create a regional financial services company with 590 branches, 751 ATMs and over $26 billion in deposits across eight northeastern states.
Two Hudson United directors will be added to the TD Banknorth Board of Directors.
The transaction is subject to approval by shareholders of Hudson United and TD Banknorth, as well as customary regulatory approvals, and is expected to close in the first quarter of 2006.
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