Mercer Capital served as financial advisor to Richwood, Ohio-based Richwood Bancshares, Inc. (“Richwood”), which announced on July 25, 2018, that it had entered into a definitive agreement to acquire Springfield, Ohio-based Home City Financial Corporation (OTC: HCFL) for $31.7 million of cash. On a pro forma basis as of March 31, Richwood’s assets will increase to $687 million from $520 million, while its footprint will expand to a fifth county in Central Ohio. The transaction is expected to close during the fourth quarter of 2018.
Jeff Davis, CFA, Managing Director of Mercer Capital’s Financial Institutions Group, said “the Home City transaction should prove to be beneficial to Richwood’s shareholders given significant EPS accretion, a short earn-back period for TBVPS dilution, and growth of the franchise in the Central Ohio market that is anchored by the thriving Columbus MSA.”
Mercer Capital is a leading independent business valuation and transaction advisory firm, which was founded in 1982, is regularly engaged to assist financial institutions and businesses in merging with and acquiring other entities and to analyze businesses and their securities in connection with mergers and acquisitions, private placements, corporate reorganizations, employee stock ownership plans, income and estate tax matters, and other corporate financial planning and advisory activities.
The joint Richwood-HCFL press release can be accessed here.