Merchants, NUVO Finalize Merger
SPRINGFIELD — Merchants Bancshares Inc. announced the completion of the merger with Springfield-based NUVO Bank & Trust Co. NUVO’s banking business will be operated as a division of Merchants Bank, a wholly owned subsidiary of Merchants.
Total compensation paid by Merchants for NUVO’s outstanding stock comprises approximately 517,100 shares of common stock and $5.1 million in cash. Merchants also paid an aggregate of approximately $878,000 to cash out NUVO stock options and a portion of its common-stock warrants and issued replacement warrants to purchase Merchants common stock on adjusted terms.
With completion of the merger, Merchants Bancshares now has consolidated assets of approximately $2.0 billion and 33 banking locations, including the new office in Springfield.
“We are pleased to welcome NUVO’s clients, employees, and shareholders to our bank,” said Geoffrey Hesslink, Merchants Bank president and CEO. “We are excited to expand our footprint beyond Vermont and entering the Springfield and Greater Western Massachusetts commercial banking market. We look forward to providing our new customers with Merchants’ exceptional service and banking products, supported by our growing team that now includes NUVO’s banking professionals.”
Donald Chase, chair of NUVO’s board of directors, will join the boards of directors of Merchants Bancshares and Merchants Bank. Joining Merchants Bank’s management team are M. Dale Janes, NUVO’s CEO, who will serve as Merchants Bank’s regional president, Western Mass.; and Jeffrey Sattler, NUVO’s president and chief loan officer, who will serve as Merchants Bank’s managing director for Western Mass.
“The board and management of Merchants are delighted to have successfully completed this strategic acquisition and welcome Don Chase to the board,” said Merchants Bancshares President and CEO Michael Tuttle.