UMB Financial To Buy Marquette

(RTTNews) - UMB Financial Corp (UMBF), a Kansas City-based diversified financial holding company on Monday agreed to buy Marquette Financial Cos (MFC), a $1.3 billion financial-services company owned by the Pohlad family of Minneapolis, in an all-stock transaction.

MFC operates 13 branches in Arizona and Texas, two national specialty-lending businesses focused on asset-based lending and factoring as well as an asset-management firm.

Upon closing, the Pohlad family will receive approximately 3.4 million shares, or $182.5 million based on UMB's closing price of $53.16 on December 12, representing approximately 7% ownership in UMB. This consideration represents a multiple of 1.6x MFC's tangible book value as of September 30, 2014. The consideration is subject to closing equity adjustments.

UMB expects the deal to be immediately accretive to its tangible book value per share at closing, and estimates it to be accretive to 2016 earnings per share.

The company also expects the deal to result in cost savings of approximately $14 million, or 23% of the last twelve months of MFC noninterest expense as of September 30, 2014, to be phased in over two years.

The deal has been approved by the boards of both companies and is anticipated to close mid-2015.