Alston & Bird client BancorpSouth Bank has announced a definitive agreement to combine with Cadence Bancorporation, the parent company of Cadence Bank N.A., in an all-stock deal that will create a combined company with a market value of $6 billion.
The new company will have $44 billion in total assets, making it the fifth-largest bank covering Texas and the Southeast, with a presence in seven of the 10 largest metropolitan statistical areas.
Based in Tupelo, MS, and listed on the New York Stock Exchange, BancorpSouth has approximately $24 billion in assets and operates more than 300 branches in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee, and Texas.
Cadence is based in Houston and also listed on the NYSE. Founded in 1885, it has $18.7 billion in total assets and operates 98 branches in Alabama, Florida, Georgia, Mississippi, Tennessee, and Texas.
The merger is anticipated to close in the fourth quarter of 2021, pending the receipt of regulatory approval and the satisfaction of other customary closing conditions. The new company will operate under the Cadence brand with dual headquarters in Tupelo and Houston.
The transaction is the second that Alston & Bird has advised BancorpSouth Bank on this year. In January, the firm advised BancorpSouth in its planned acquisition of FNS Bancshares Inc., the parent company of FNB Bank, in a transaction valued at roughly $108.4 million.
Advising BancorpSouth in the proposed acquisition is an Alston & Bird team led by partners Sandy Brown and Kyle Healy and senior associate John Gerl (Financial Services & Products); partner John Shannon (Employee Benefits & Executive Compensation); and partner Clare Draper (Labor & Employment).