By Lisa Kerner
Charlotte, N.C., Nov. 14 - Oritani Financial Corp. agreed to acquire Greater Community Bancorp in a stock and cash deal valued at $187 million, or $21.40 per share.
The consideration mix will be 60% stock and 40% cash, and the exchange ratio for the stock portion will be no more than 1.4588 and no less than 1.1935, according to an Oritani news release.
Greater Community Bank will be merged into Oritani Savings Bank, which will be renamed Oritani Community Bank. Both banks' loan portfolios consist mainly of commercial and multi-family real estate loans.
The transaction is slated to close by June 30, 2008, the end of Oritani's fiscal fourth quarter of 2008. Oritani expects the merger to be at least 20% accretive to fiscal 2009 earnings per share and 40% accretive to fiscal 2009 cash earnings per share.
Both companies' boards of directors have approved the deal, which is subject to shareholder approval.
Greater Community directors Charles J. Volpe and Alfred R. Urbano will join Oritani's board of directors. Anthony M. Bruno, chairman, president and chief executive officer of Greater Community, will resign following the closing "to pursue other interests," the release stated.
"The acquisition of Greater Community accomplishes a number of financial and strategic goals for Oritani," Oritani chairman, president and CEO Kevin J. Lynch said in the release.
"The transaction fully levers the capital raised in our initial public offering earlier this year and provides the option for the transition to a fully public company at the appropriate time," Lynch added.
Oritani was advised by FinPro, Inc., and Greater Community was advised by Sandler O'Neill + Partners, LP and the Kafafian Group, Inc.
Oritani Financial is the holding company for Oritani Savings Bank and is based in Washington Township, N.J.
Greater Community Bancorp is the financial holding company for Greater Community Bank and is located in Totowa, N.J.
| Acquirer: | Oritani Financial Corp.
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| Target: | Greater Community Bancorp
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| Announcement date: | Nov. 14
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| Transaction total: | $187 million
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| Price per share: | $21.40
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| Expected closing: | By June 30, 2008
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| Stock price for acquirer: | Nasdaq: ORIT: $17.07 on Nov. 13
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| Stock price for target: | Nasdaq: GFLS: $14.40 on Nov. 13
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