Home Bancorp Inc. which is based in Lafayette, LA has decided to invest in its neighbor to the east. In a deal that is expected to cost $34.5 million Home Bancorp will be acquiring Britton and Koontz Capital Corp. in Mississippi.
B&K, which is the holding company for B&K Bank, is based in MS where it operates five branches – three in Natzche, MS and two in Vicksburg, MS. In addition to its five branches in MS, it also operates a number of branches in Louisiana, three in Baton Rouge as well as a loan production office in Central.
Unlike B&K which has operations outside its home state, the acquisition will net Home Bancorp its first operation outside Louisiana. Presently, Home Bank is the holding company for Home Bancorp Inc., and it operates nine branches in Acadiana. It also has another four in New Orleans, three in Baton Rouge and six on the Northshore.
When the deal is finalized the B&K shareholders are expected to receive $16.14 for each share. All in all, the result will be a company with combined assets totaling around $1.2 billion. Additionally, Home Bancorp’s Baton Rouge loan and deposit base will be doubled. This acquisition is expected to attract quite a bit of investor attention. While shares prices typically fall after mergers, in this case, Home Bancorp’s shares were slightly up.
Despite the acquisition, the companies are expected to maintain their commitment to their customers. The acquisition is expected to be completed at the end of 2014’s first quarter. Such business transactions can get complex. Generally, during any merger and acquisition negotiations, it may help companies involved in discussions to ensure that they have adequate and competent legal representation so they get the best deal possible.
Source: The Advocate, “Lafayette’s Home Bancorp to purchase Britton & Koontz,” Ted Griggs, Nov. 14, 2013