Harrisburg-based Mid Penn Bancorp recently announced it will merge with New Jersey-based Brunswick Bancorp.
Brunswick Bank will be merged with and into Mid Penn Bank.
The companies signed an agreement for Mid Penn to acquire Brunswick in a combination cash and stock transaction valued at approximately $53.9 million. The purchase price will be adjusted if Brunswick does not meet certain minimum shareholder equity covenants.
Half of Brunswick’s common shares will be converted into Mid Penn common stock. The remaining half will be exchanged for cash. Brunswick shareholders will have the option to receive shares of Mid Penn common stock or $18.00 in cash for each common share of Brunswick they own.
Both boards of directors approved the merger. Once complete, it will expand Mid Penn’s presence in the central New Jersey market and give Mid Penn five financial centers.
“We feel confident that this combination will, in a very short period of time, create one of the most dynamic and organically growth-oriented financial institutions in that region,” Rory G. Ritrievi, Mid Penn chairman, president and CEO, said.
The merger is subject to customary closing conditions and is expected to close during the second quarter.
A Brunswick director will join the Mid Penn Bancorp board of directors.