IberiaBank is acquiring Sabadell United Bank, which has 26 branches in South Florida, in a stock and cash transaction valued at $1.03 billion.
Sabadell United Bank, N.A., is a subsidiary of Banco de Sabadell, which is based in Barcelona, Spain. As of Dec. 31, Sabadell United had assets valued at $5.8 billion. The bank is based in Miami and has branches in Miami-Dade, Broward, Palm Beach, Hillsborough, Sarasota and Collier counties. The deal is expected to close in the second half of 2017.
Daryl G. Byrd, the president and chief executive officer for 129-year-old IberiaBank, based in Lafayette, Louisiana, commented in a press release, “We are very pleased to have the opportunity to bolster our South Florida franchise by joining forces with the exceptional team at Sabadell United. With a population of over six million people, the greater Miami area is a dynamic market with a strong concentration of commercial and industrial clients that are particularly attractive to us. Sabadell United’s deep commercial and retail lending base, combined with strong core deposit funding and quality credit underwriting, provides an excellent fit with our unique culture and business model.
“Sabadell United delivers compelling long-term strategic value to IberiaBank by complementing our existing Florida franchise. With this acquisition, our Company will have a meaningful presence in each of the five largest markets in the Southeast, further solidifying our status as a premier Southeastern banking franchise.”
Never miss a local story.
IberiaBank said Florida will become its largest state by deposits.
A 2015 Miami Herald article said that Sabadell United primarily deals with “wealthy individuals, small- and medium-sized businesses, law firms, developers and other high net-worth clients,” along with foreign clients who are moving to or working in south Florida.
The bank was founded in 2010 after Banco Sabadell, Spain’s fourth-largest bank, bought Mellon United National Bank. Banco Sabadell then merged with Miami-based Transatlantic Bank, which it had owned since 2007.
Fernando Pérez-Hickman, chairman of Sabadell United, commented in a press release, “We are very excited about this combination and look forward to partnering with IberiaBank. Sabadell United and IberiaBank share a common belief that success is driven by people and relationships at the local level. We are proud to partner with an organization that mirrors our client relationship-focused approach to business and values local decision-making and community involvement.”
Under the terms of the agreement, IberiaBank will purchase Sabadell United for $803 million in cash and approximately 2.6 million shares, valued at $222 million, according to The Advocate, a news organization in Baton Rouge, New Orleans and Acadiana. IberiaBank expects to finance the cash portion of the transaction, in part, through a $500 million common stock offering. Once the deal closes, Banco Sabadell will own about 4.9 percent of IberiaBank common stock.
Lafayette-based IberiaBank has more than 300 locations in Louisiana, Arkansas, Alabama, Tennessee, Texas, Florida and Georgia, including nearly 200 bank branches. The bank also operates title insurance, loan production, mortgage and wealth management offices across the Southeast.