Lakeland Bancorp Inc. and 1st Constitution Bancorp entered into a definitive agreement and plan of merger under which Lakeland will acquire 1st Constitution in a transaction valued at about $244 million, the banks announced July 12.
The combined organization will have approximately $9.6 billion in assets, making it the fifth-largest bank headquartered in New Jersey. Lakeland is headquartered in Oak Ridge and 1st Constitution is headquartered in Cranbury.
Lakeland will acquire all of the outstanding shares of 1st Constitution in exchange for common shares of Lakeland, and will cash out outstanding 1st Constitution options. The exchange ratio will be 1.3577 Lakeland shares for each 1st Constitution share, resulting in an aggregate transaction value of approximately $244.4 million, or $23.53 per share.
“This business combination provides attractive financial attributes to shareholders of both Lakeland and 1st Constitution. This merger is consistent with our recent initiatives to expand into desirable markets,” Lakeland Chief Executive Officer Thomas Shara said. “We look forward to working with 1st Constitution in delivering a broad array of business and consumer products into our expanded marketplace.”
1st Constitution President and CEO Robert Mangano will be appointed to the boards of directors of Lakeland and its subsidiary Lakeland Bank.
The merger agreement was unanimously approved by the boards of directors of both companies. The merger is expected to close in the fourth quarter of 2021 or early first quarter 2022, subject to satisfaction of customary closing conditions.
Keefe, Bruyette & Woods, A Stifel Co., served as financial advisor and Luse Gorman PC served as legal counsel to Lakeland.
Raymond James served as financial advisor and Day Pitney LLP served as legal counsel to 1st Constitution.