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Citizens Financial Group to Acquire Charter One Financial
PROVIDENCE, R.I. -- Citizens Financial Group Inc., a subsidiary of The Royal Bank of Scotland Group plc, has reached an agreement to acquire Cleveland-based Charter One Financial Inc. in a cash transaction of approximately $10.5 billion. This transaction will make Citizens one of the 10 largest commercial bank holding companies in the United States. Citizens will maintain its corporate headquarters here.The cash purchase price is $44.50 per share. The transaction is expected to close in the fourth quarter of this year, subject to regulatory approval.Charter One has $41 billion in total assets, making it one of the 25 largest bank holding companies in the country. The bank has more than 616 banking center locations in Ohio, Michigan, New York, Illinois, Massachusetts, Vermont, Indiana, Connecticut and Pennsylvania. In the local region, Charter One has branches in Mahoning, Trumbull and Columbiana counties.The acquisition adds $43 billion in assets, 616 retail branches including 160 in-store locations, and 8,400 employees to Citizens Financial. Combined with its New England and Mid-Atlantic franchises, Citizens will grow to $128.8 billion in assets, more than 24,000 employees and more than 1,400 branches across 13 states. Citizens will become third largest in supermarket banking nationally.Citizens will extend its franchise beyond its current New England and Mid-Atlantic footprint into the Midwest and Northeast, adding major markets in six new states: Ohio, Michigan, New York, Illinois, Vermont and Indiana. It will also expand and strengthen Citizens' business in western Massachusetts, Connecticut and Pennsylvania."This is a significant transaction for Citizens," says Citizens Chairman, President and Chief Executive Officer Lawrence K. Fish."This is a highly logical and very natural acquisition for Citizens to make," adds Fred Goodwin, RBS Group chief executive. "As well as making good financial sense in its own right, it opens up another interesting range of options for Citizens to maintain their strong growth momentum, and it consolidates Citizens' position as one of the leading banks in the United States. That it will take the share of Group profits generated in the United States to 25% is also of note.""This is a tremendous opportunity for Charter One Bank," states Charles John Koch, Charter One's Chairman and Chief Executive Officer. "It's almost as if our entire 70-year history has been building to this point. Citizens Financial Group shares our operating philosophy, strategies and customer focus. Our geographic footprints fit together perfectly. And it's wonderful to be teaming up with an organization that shares our passion for retail banking. I can't think of a more appropriate partner to continue the legacy we've begun."As part of this transaction, Charter One's national bank charter will remain. Upon completion of this deal, Koch will serve as chairman of the Cleveland based bank, vice chairman of the Citizens Financial Group board, and on the RBS board.Citizens is committed to completing the substantial branch opening program started by Charter One and will establish a $60 million foundation for the Charter One markets.This will be Citizens' 26th strategic acquisition since 1988. Citizens Financial Group Inc. is a $78 billion commercial bank holding company with more than 880 offices and more than 15,500 employees in seven states.Visit Citizens Bank: www.citizensbank.comVisit Charter One Financial Inc: www.charterone.com"