Page 28 - BusinessWest January 6, 2025

Merger of Equals
Berkshire Bank, Brookline Bank to Form Combined Company
Berkshire Hills Bancorp Inc., the parent company of Berkshire Bank, and Brookline Bancorp Inc., the parent company of Brookline Bank, Bank Rhode Island, and PCSB Bank, recently
announced they have entered into a definitive agreement pursuant to which Brookline will merge with and into Berkshire in an all-stock transaction valued at approximately $1.1 billion, or $12.68 per share of Brookline common stock, based on the $30.20 closing price of Berkshire common stock on Dec. 13, 2024.
In conjunction with the planned merger, Berkshire also entered into subscription agreements with investors to raise capital to sup- port the merger. In aggregate, $100 million of Berkshire common stock were issued at $29 per share. The proceeds of the capital raise are expected to support the pro forma bank’s balance sheet and regulatory capital ratios.
ues centered on respect, teamwork, accountability, and client focus, the press announcement noted,
Berkshire
Continued on page 29
“Scale and efficiency combined with our shared culture of true community banking is a powerful driver of value for all of our stakeholders.”
>>
Nitin Mhatre, president and CEO of Berkshire Bank, said the merger announcement “marks a transformational milestone in the history of two storied institutions with a strong commitment to serv- ing their clients and communities. The combined organization will be in an even stronger position to deliver exceptional client experi- ence and create greater value for shareholders.”
Paul Perrault, chairman and CEO of Brookline Bank, noted that “this transaction presents an opportunity to bring together two his- toric franchises in the Northeast market. By bringing together two complementary cultures and geographic footprints with shared val- ues and client focus, we will be better-positioned to serve our cus- tomers, employees, communities and shareholders.”
Berkshire Bank Chairperson David Brunelle added that “this highly compelling combination is a true merger of equals that will create a pre-eminent Northeast financial institution. Scale and effi- ciency combined with our shared culture of true community banking is a powerful driver of value for all of our stakeholders.”
The creation of a $24 billion franchise with 148 branch offices positions the combined company to benefit from significant econo- mies of scale and capitalize on meaningful growth opportunities through business diversification and improved competitive position- ing. Together, the companies will have the scale to enhance invest- ments in clients, employees, and markets, and increase lending capacity.
The combined company promise to preserve and build on the cultures of both Berkshire and Brookline, which include core val-
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28 JANUARY 6, 2025 << BANKING & FINANCE >>
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