Banc of California revealed its acquisition of PacWest Bancorp in an all-stock deal on July 25, 2023. The transaction is set to finalize by late 2023 or early 2024. PacWest shareholders will get 0.66 shares of Banc of California common stock for each share, offering a 25% premium over PacWest’s July 25, 2023 closing price.
- Merger creates a $36 billion bank in LA, led by Jared Wolff.
- Warburg Pincus & Centerbridge invest $400 million.
- They get 20% of combined company & warrants.
- Goals: larger, diversified bank, broader reach, better products.
- Merger shows confidence in California economy & customer commitment.
The California banking market is set to experience a significant shift with Banc of California’s acquisition of PacWest Bancorp, announced on July 25, 2023. Expected to be finalized in late 2023 or early 2024, the all-stock transaction will see PacWest shareholders receiving 0.66 shares of Banc of California common stock for each share they hold, offering a 25% premium based on PacWest’s closing price on the announcement date.
With combined assets totaling approximately $36 billion, the new entity will be headquartered in Los Angeles and led by Banc of California’s current CEO, Jared Wolff.
